What Analysts Think about the Top 3 Wireless REITs after 2Q17

Jennifer Mathews - Author

Aug. 17 2017, Published 4:20 p.m. ET

SBAC Communication’s target price and ratings

The wireless tower owners’ expected performance in fiscal 2017 is reflected in the analysts’ ratings for the companies. SBAC Communications (SBAC) was assigned a target price of $151, which implies a 5.1% premium to the current price of the stock. While 13 analysts gave the stock a “buy” or a “strong buy” rating, six analysts rated the stock as a “hold.” SBAC’s higher-than-expected results in the second quarter and the consistent top-line and bottom-line growth have made analysts bullish on the stock. However, SBAC hasn’t paid dividends to investors.

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Crown Castle’s target price and ratings

Crown Castle International (CCI) was assigned a target price of $107.41, a 3.5% premium to the current price level. While 15 analysts assigned a “strong buy” or a “buy” rating to the company, six analysts gave a “hold” rating to the stock. CCI’s robust second quarter results and enhanced guidance for fiscal 2017 have made the analysts bullish on the stock. However, the company has recently invested a significant amount in small cell technology, which could help the company in capturing market share during the 5G revolution. Several investors have adopted a wait-and-watch policy for the stock in the upcoming months.

American Tower’s target price and ratings

American Tower (AMT) has been assigned a target price of $147.62, which is a premium of 4.6% to the current price level. 21 analysts gave the stock a “strong buy” or “buy” rating, and one analyst rated the stock a “hold.” While analysts were encouraged by the consistent growth of the company, they were bullish about AMT’s robust 2Q17 results. Moreover, analysts were encouraged by AMT’s strong presence in the emerging markets.

The three REITs along with Prologis (PLD) account for 15% of the iShares US Real Estate ETF (IYR). The ETF’s has returned 6.8% year-to-date.


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