Crown Castle's price target has been increased by UBS to $118 from $103, with a Neutral rating on the shares.
The adjustment is in response to the company's Q3 results, which met revenue expectations and exceeded estimates for EBITDA and adjusted FFO by 2%-4%.
Despite the positive quarterly performance, UBS predicts challenges in the future, including an anticipated 8% decline in AFFO per share for 2024 due to factors such as higher interest rates, a decrease in service contributions, and lower prepaid amortization and Sprint cancellation fees.
UBS expects this trend to continue with low single-digit declines in 2025, followed by a return to growth in 2026.