We have maintained our Neutral recommendation on
Crown Castle International Inc.
), as both its top and bottom lines topped the Zacks Consensus
Estimates in the recently concluded quarter.
Why Remains Neutral?
Higher usage of smartphones and tablets and increased
deployment of 4G LTE networks have propelled demand for tower
requirement by large carriers. Moreover, the acquisition of NextG
Networks Inc. (which comprised of 7,000 Distributed Antenna
Systems) and the purchase of 7,200 wireless towers from T-Mobile
USA have made them the largest wireless tower operator in the
Crown Castle's top-line growth prospect remains highly moving
equipments from one tower to another is cumbersome, carriers
normally renew these contracts upon expiration, which implies
that a high percentage of Crown Castle's revenue is recurring,
hence avoids loss of customers.
Additionally, an expected hike in annual price by about 3-5%
will further act as a growth catalyst for Crown Castle going
However, highly leveraged balance sheet and ongoing merger
deals between large telecom carriers may act as headwinds for the
company going forward. Moreover, Crown Castle is currently
trading at a 52-week high.
Crown Castle carries a Zacks Rank #2 (Buy).
Other Stocks Outlook in Related
Other stocks in this sector like
SBA Communications Corp.
American Tower Corporation
) are set to gain from the robust growth of LTE deployments in
the upcoming days. These companies are about to declare their
fourth quarter results next month.
Currently, American Tower, SBA and Equinix have a Zacks Rank
#3, (Hold) for the short term.
AMER TOWER CORP (AMT): Free Stock Analysis
CROWN CASTLE (CCI): Free Stock Analysis
EQUINIX INC (EQIX): Free Stock Analysis
SBA COMM CORP (SBAC): Free Stock Analysis
To read this article on Zacks.com click here.