Oppenheimer Reiterates Outperform On Crown Castle International, Sees 14% Upside


Oppenheimer analyst Timothy Horan reiterated an Outperform rating on Crown Castle International (NYSE:CCI) with a price target of $90.00, which represents a potential upside of 14% from where the stock is currently trading.

Horan noted, “CCI reported strong 3Q14 results; however, 2015 guidance was shockingly low, about 400bps weaker than expected, due largely to site rental churn of 4.2%. Positively, CCI raised its dividend 120% to $3.27/share (up from $1.40/share), and the current 4.2% yield looks attractive versus average REITS at 3.7%, in our view, as the company should be able to increase its dividend at 2x the rate of the REIT index. With this report we are lowering our estimates, although the VZ tower portfolio acquisition is a strong possibility and should be accretive. CCI must now take a disciplined approach to CAPX spending to keep the payout ratio manageable.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Timothy Horan has a total average return of 12.6% and a 61.5% success rate. Horan is ranked #644 out of 3355 analysts.

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