Houston, Texas-based Crown Castle Inc. (CCI) is a real estate investment trust (REIT) that owns, operates, and leases communications infrastructure, including cell towers, small cells, and fiber networks. Valued at a market cap of $45.8 billion, the company supports wireless carriers and broadband providers by enabling mobile data, 5G deployment, and high-speed connectivity. 

This specialty REIT has underperformed the broader market over the past 52 weeks. CCI has declined 6.8% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.1%. Nonetheless, on a YTD basis, the stock is up 16%, outpacing SPX’s 7.9% return. 

Narrowing the focus, CCI has also lagged behind the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF’s (SRVR) 9% uptick over the past 52 weeks. On the other hand, it has outperformed the ETF’s 5.1% YTD rise. 

On Jul. 23, CCI delivered better-than-expected Q2 results, and its shares surged 3.8% in the following trading session. Due to a decline in site rental revenues, the company’s top-line dropped 4.2% year-over-year to $1.1 billion. However, the revenue figure surpassed the consensus estimates by 1.9%. Additionally, its adjusted EBITDA fell 3% from the year-ago quarter to $705 million, while its AFFO per share of $1.02 decreased 1% from the same period last year. Yet, the AFFO figure also exceeded Wall Street’s expectations by 2%. 

Its Q2 performance was supported by strong operational execution and increased leasing activity from customers, which also led the company to raise its fiscal 2025 guidance. CCI now expects site rental revenues to be $4 billion, and projects AFFO per share to be $4.20 at the midpoint.

For the current fiscal year, ending in December, analysts expect CCI’s FFO to decline 42.4% year over year to $4.02 per share. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.

Among the 18 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 10 “Strong Buy,” and eight “Hold” ratings. 

This configuration is slightly more bullish than a month ago, with nine analysts suggesting a “Strong Buy” rating.  

On Jul. 29, Barclays PLC (BCS) analyst Brendan Lynch maintained a "Buy" rating on CCI and set a price target of $121, implying a 14.9% potential upside from the current levels. 

The mean price target of $118.47 represents a 12.5% premium from CCI’s current price levels, while the Street-high price target of $127 suggests an upside potential of 20.6%.