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KeyBanc analyst Brandon Nispel on Monday downgraded American Towers (NYSE:AMT) and Crown Castle (NYSE:CCI) for Industry Share from Overweight due to FFO growth is fixed for both tower REITs and lack of industry catalysts.
AMT and CCI decreased 0.7% and 1.8%respectively, in the premarket transaction.
Citing foreign exchange headwinds, lower US capital spending and higher taxes, Nispel has placed its 2023 AFFO estimate of $10.12 per share for AMT below the Visible consensus. Alpha is $10.41, he wrote in a note.
“Since AMT issued LT guidance calling for double-digit AFFO/sh growth, 2023 will decline very rapidly and likely 2024 will also, which we expect will cause investors put AMT in jeopardy,” the note said.
Similarly, like Crown Castle’s (CCI) Tower leasing guidance for 2023 is down year-on-year, Nispel said “2024 is likely to report flat AFFO/sh growth and 2025 is likely to be flat due to Tower change Sprint.”
Nispel is still the overweight SBA Media Company (SBAC) as rental growth in the US is expected to decelerate less than expected.
See why Seeking Alpha contributor Dane Bowler prefers AMT over CCI though CCI valuation is more “attractive”.
