Crown Castle Earnings: Stock Extremely Attractive After Recent Selloff and Boring Quarter

Crown Castle’s first-quarter results contained no surprises, as they were neatly in line with management’s prior outlook. New investment on towers from mobile carriers has remained muted, and small cell revenue growth has accelerated. However, we’re enthused about the company’s direction following the strategic and operational review of the fiber segment and the installation of a new CEO, Steven Moskowitz, last week. We believe there are numerous opportunities for upside in narrow-moat Crown’s stock, as we’re maintaining our $130 fair value estimate. We attribute the extreme selloff in the past month entirely to the violent spike in interest rates. Crown is likely to remain sensitive to interest rates in the near term, but we see a lot of value being overlooked.