UPDATE: Oppenheimer Upgrades Crown Castle (CCI) to Outperform
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
(Updated - September 6, 2016 9:21 AM EDT)
Oppenheimer upgraded Crown Castle (NYSE: CCI) from Perform to Outperform with a price target of $109. Analyst Timothy Horan thinks the company is well positioned to benefit from data traffic trends.
"We expect mobile data traffic to grow 10x in the next six years. The carriers are encouraging this growth through higher data bucket plans. This growth should drive cell site equivalent locations by 25%-50%, with a third of this through small cell on which CCI is focused. Macro towers are also set to benefit from new spectrum builds —AWS-3, FirstNet, Dish, 600 MHz. CCI is only at two tenants per tower, growing at 0.1 annually, which will drive EBITDA margins up 100 bps per year for the next decade. Finally, the S&P GICS code for REITs is a strong catalyst as CCI is a less risky, domestic play with a 4% yield (vs. 3.5% for REITs) growing dividends 50% faster than traditional REITs," said Horan.
The analyst added, "With near-term catalysts and stable rates, CCI offers investors unique exposure to secular growth in data consumption and small cells. CCI's dividend is 4%, growing 8% per year."
Shares of Crown Castle closed at $96.06 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Upgrades Flowers Foods (FLO) to Hold
- MKM Partners Raises Price Target on Broadcom Ltd. (AVGO) to $207 Following 4Q Beat
- BMO Capital Raises Price Target on Dollar Tree (DLTR) to $96; Reiterates Market Perform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Upgrades
Related EntitiesStandard & Poor's, S3
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!