Citizens reiterates Crown Castle stock rating on durable cash flows

SpaceX seeks 80,000 cell sites for Starlink, reportedly in talks with Crown Castle. AT&T, Verizon, and T-Mobile fell on competition concerns, while Crown Castle and American Tower rose.

SpaceX (SPCX) is in talks to access 80,000 U.S. cell sites, including negotiations with Crown Castle (CCI), to build a nationwide wireless network. The initiative, backed by FCC approval and spectrum acquisitions, aims to challenge incumbent carriers. CCI stock surged 10% post-earnings on potential leasing deals.

SpaceX is in talks with Crown Castle to lease 80,000 cell sites, aiming to build a nationwide wireless network. This could compete with existing carriers like Verizon, AT&T, and T-Mobile, which saw after-hours declines of 4-5%. SpaceX recently acquired 800 MHz spectrum for $8B, subject to approval. Analysts have adjusted price targets for T-Mobile and Verizon amid growing competition.

Crown Castle (CCI) reported Q3 2026 AFFO per share of $1.24, beating estimates by 3.3%, driven by lower expenses. Revenue fell 7.2% YoY to $995M, missing estimates, due to lower site rental and services revenues. Despite cost savings, EBITDA declined 6.3%. Capital spending rose 57.1% YoY, mainly due to land acquisitions. CCI raised its full-year AFFO and EBITDA outlook.

BMO Capital reduced Crown Castle's (CCI) price target to $91 from $93, citing softer leasing outlook despite Q3 earnings beat and raised EBITDA guidance. The stock trades at $79.95, offering upside. BMO notes risks for 2027 but sees medium-term growth from spectrum investments. CCI reported Q3 2026 earnings of $0.67 per share on $995M revenue, slightly missing estimates. Citizens reiterated an Outperform rating with a $120 target, highlighting CCI's cash flows and balance sheet.

TD Cowen reaffirmed a Buy rating and $98 price target for Crown Castle, implying 24.6% upside from the Oct 21 close. The company raised 2026 revenue and EBITDA guidance, citing growth catalysts like 6G and mobile data traffic.