Crown Castle (CCI) T-Mobile Agreement Removes 2023 Growth Risk - Morgan Stanley

Morgan Stanley analyst Simon Flannery reiterated an Overweight rating and $208.00 price target on Crown Castle (NYSE: CCI) after the company entered a new 12-year agreement with T-Mobile covering both towers and small cells.

The analyst stated "The agreement will drive $250mn in new straight-line revenue for 2022 (boosting revenue and EBITDA but not AFFO), focuses Sprint tower churn in 2025 ($200mn), includes 35k small cells over 5 years and will allow the company to deliver on its 7-8% annual dividend growth rate in each year apart from 2025. Overall, we view this deal as a clear net positive as looming Sprint churn in 2023 was an overhang for investors, while the timing of a rebound in small cell activity has been another key concern. Existing MS and consensus 2023 AFFO/sh growth estimates in the 3-4% range now look conservative."

For an analyst ratings summary and ratings history on Crown Castle click here. For more ratings news on Crown Castle click here.

Shares of Crown Castle closed at $192.50 yesterday.

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