Crown Castle Inc
CCI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$218.00 | Xynbtwq | Tcfy |
Towers Remain Crown’s Best Business Despite Outsized Investment in Fiber
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.