Crown Castle Inc
CCI: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$978.00 | Nfhkyj | Lbj |
Towers Are Crown Castle’s Crown Jewel; High Fiber Spending Seems Less Worthwhile
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. We acknowledge the potential upside, but small cells require heavy initial investment and lack the competitive advantage that Crown has with its towers.