Strong Tower Market Drives Crown Castle to Another Good Quarter

Little changed in the narrative or the results from Crown Castle’s first quarter. The tower market remains strong, and management reiterated its expectation that high levels of tower leasing activity will persist and lead to good tower growth for several years. Nothing material changed in the fiber business, either. Small cell sales growth remains unimpressive, but the slower rollout of small cells the past couple years makes it unsurprising. Crown Castle expects to double the number of small cells it brings on air in 2023, which may bring some of the focus away from towers. As has frequently been the case, the company raised full-year sales guidance due to noncash items that won’t affect funds from operations or cash flow. We are maintaining our $135 fair value estimate.