Crown Castle International Corp. (REIT) (NYSE:CCI) shares price target have been reduced by $10 to $100 by S&P Capital IQ analyst Zino. However, the analyst maintained his Buy rating on the company’s shares. The revised price objective still offered more than 10 percent upside potentials from the current levels.
Zino’s price tag is based on an enterprise value to EBITDA of 19X his 2018 estimate, near peers, as well as, the company’s five-year historical average. The move came after Crown Castle International delivered adjusted FFO of $1.10 a share for the fourth quarter that missed Capital IQ consensus of $1.11. However, sales, which grew 9.2 percent, were better than expected due to 5 percent organic site rental revenue growth. Aside from that, the company gained from tower acquisitions contribution.
As a result, Zino trimmed his EPS estimate from $1.34 to $1.19 for the fiscal year 2017. He initiated his EPS estimate at $1.61 for the year 2018.
However, the analyst viewed in his research note that “We positively view CCI’s expansion of its small cell footprint, improving financial flexibility and recent acquisitions.”
At time of writing this, the stock gained 1.66 percent.