Crown Castle Inc
CCI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$195.00 | Pnrxhsc | Fqft |
We’re Less Bearish on Crown’s Small Cells but Still Think They’re a Detriment to Its Business
Business Strategy and Outlook
Crown Castle's strategy has deviated from that of its two biggest competitors, which focus almost exclusively on towers and have a multinational footprint. Crown operates exclusively in the United States and is aggressively investing in fiber to pursue small-cell communications sites. In our view, Crown Castle has adopted a high-risk strategy. While we acknowledge the potential upside, small cells require heavy initial investment and lack the competitive advantage that Crown has with its towers.