Crown Castle Earnings: Amid Pervasive Gloom, Firm Is Suddenly Sitting Pretty With Towers and Fiber

The parade of negatives that hit Crown Castle in 2023—all of which we think are overblown—include activist pressure to dispose of the underwhelming fiber business, a slowdown in wireless carrier spending, looming Sprint churn and related liquidity concerns that could threaten the dividend, and a management shakeup that has resulted in an interim CEO and three new board members. As the firm’s fourth-quarter results and reaffirmed 2024 guidance indicate, tower leasing remains strong, the fiber business is significantly improving, and Crown has a healthy amount of liquidity that we think will enable it to maintain its dividend. We were encouraged by the rhetoric from the new CEO and believe Crown is on a healthy course. We are maintaining our $130 fair value estimate, and we think the stock is attractive.