Houston-based Crown Castle Inc. (CCI) is a leading real estate investment trust specializing in cell towers and fiber networks. Valued at $48.35 billion by market cap, the company owns, operates, and leases more than 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market.

Shares of the telecom infrastructure REIT have underperformed the broader market over the past year. CCI has gained 7.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.1%. In 2024, CCI stock is down 3.2%, compared to the SPX’s 9% returns on a YTD basis.

Narrowing the focus, CCI’s underperformance is also apparent compared to the S&P 500 Real Estate Sector SPDR (XLRE). The exchange-traded fund has gained about 9.9% over the past year. Moreover, the ETF’s 3% gains on a YTD basis compare to the stock’s loss over the same time frame.

On Jul. 17, CCI reported its Q2 results. Its fund from operations of $704 million or $1.62 per share, failed to surpass the consensus estimates of $1.65. The company’s net income and EPS stood at $251 million and $0.58, respectively. CCI’s revenue of $1.63 billion beat the Wall Street expectations of $1.62 billion. Moreover, it expects full-year funds from operations between $6.91 and $7.02 and net income per share between $2.59 and $2.74. CCI shares closed up more than 1% on the day its results were released and have been on an uptrend since then.

For the current fiscal year, ending in December, analysts expect CCI to report an FFO decline of 12.2% to $6.63 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters. 

Among the 19 analysts covering CCI stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” and one “Strong Sell.”

This configuration is less bullish than three months ago, when the consensus rating was Moderate Buy.

Recently, RBC Capital analyst Jonathan Atkin maintained a “Hold” rating on CCI stock with a price target of $104, implying a potential downside of 6.5% from current levels.

The mean price target of $110.17 represents a marginal downside from CCI’s current price levels. The Street-high price target of $127 suggests an upside potential of 14.1%.

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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.