Zacks Investment Research downgraded shares of Crown Castle International Corporation (CCI) from OUTPERFORM to NEUTRAL on December 20, 2012, with a target price of $74.00.
We downgrade our recommendation on Crown Castle to Neutral based on its extremely high level of current valuation. The stock price has soared nearly 62% in the last year. The company posted solid financial results for the third quarter of 2012. Management has raised 2012 adjusted EBITDA guidance. Massive growth of mobile broadband, higher usage of smartphones and tablets together with increased deployment of 4G LTE networks are the long-term positives for the wireless tower industry. We believe future financials of the company will be driven by substantial demand for more tower space to facilitate high-speed wireless networks. In this respect, the newly acquired T-Mobile wireless towers will enable Crown Castle to improve both its top and bottom line. Our long-term view regarding wireless tower industry remains intriguing and we believe Crown Castle is well positioned to capitalize on these opportunities.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Crown Castle International Corporation (CCI),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment