CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our price target by $25 to $87, applying an EV/EBITDA multiple of 14.5x to our 2024 estimate, a discount to CCI’s 10-year average multiple of 21.5x, reflecting a weaker macro outlook, continued Sprint churn, and a pullback in 5G spend from major telcos (i.e., Verizon, AT&T, and T-Mobile). We lower our 2023 adjusted FFO (AFFO) estimate by $0.03 to $7.52 and our 2024 estimate by $0.55 to $6.91. CCI reported Q3 2023 AFFO of $1.77 vs. $1.85, a $0.03 consensus miss on revenues that came in slightly below consensus ($1,667M vs. $1,689M). Site rental revenues rose 1% Y/Y as organic growth remained positive, with Towers +4% Y/Y, Fiber +3% Y/Y, and Small Cells +3% Y/Y. Looking to 2024, we expect Sprint churn and a challenging macro environment to lead to leasing volumes remaining at weaker 2H 2023 levels, resulting in organic growth of 4% vs. the 7%-8% long-term target. CCI remains on track to deliver 10,000 small cells in 2023 and is forecasting a 40% increase in deliveries in 2024 as demand remains healthy.