Overview
BMO Capital lowered its price target on Crown Castle (NYSE: CCI) to $91.00 from $97.00 and retained an Outperform rating on the shares. The stock is trading at $78.37, close to a 52-week low of $77.89 and well below a 52-week high of $115.76. According to InvestingPro data cited alongside the firm’s note, the equity currently appears overvalued relative to its Fair Value assessment.
Drivers of the revision
The analyst downgrade in target follows Crown Castle’s 2026 guidance, which BMO described as disappointing. The firm attributed the shortfall primarily to a larger-than-expected impact from DISH Network, which reduced the company’s organic growth outlook. BMO also highlighted that leasing activity, when measured excluding DISH, is expected to decline slightly in 2026.
Despite these headwinds, InvestingPro data referenced in the update shows net income is forecast to grow this year, even as consensus estimates anticipate a 5% decline in sales for the current year. BMO noted that Crown Castle views organic growth of approximately 3% - including Sprint churn - as the floor for the business, but the bank expects only minimal improvement in organic growth over the next several years.
Market reaction and strategic implications
BMO expects the market to react negatively to the guidance, yet the firm argued the updated outlook may help "clear the decks" for the company. The research team added that Crown Castle would be a primary beneficiary of any eventual resolution with DISH, though the timing of such a resolution is described as "highly uncertain."
Quarterly performance and peer reaction
Separately, Crown Castle reported fourth-quarter 2025 results that beat analyst expectations. The company reported earnings per share of $0.67, above the consensus of $0.55 - a surprise of 21.82%. Revenue was reported in line with forecasts at $1.06 billion. Following the quarterly release, UBS adjusted its price target to $105 from $116 while maintaining a Buy rating.
UBS characterized the fourth-quarter results as "solid," noting that site rental revenues, EBITDA, and AFFO exceeded expectations by 1%, 2%, and 5%, respectively. UBS’s price-target revision followed these metrics and the broader update on the company’s strategic and operational shifts.
Context and outlook
The combination of a lowered price target from BMO, a reduction from UBS, and mixed guidance creates a complex near-term picture for Crown Castle. The company is navigating strategic adjustments and significant operational changes while balancing renewal and leasing dynamics influenced by large customers such as DISH. Investors and analysts appear divided between the near-term pressure from DISH-related churn and the potential long-term upside if that situation is resolved.
Summary of key developments:
- BMO cut its price target to $91 from $97 and kept an Outperform rating.
- Shares trade near the 52-week low of $77.89, currently at $78.37, compared with a 52-week high of $115.76.
- Q4 2025 EPS of $0.67 beat expectations by 21.82%; revenue matched the $1.06 billion forecast.
- UBS lowered its target to $105 from $116 and maintained a Buy rating, calling results "solid."