Crown Castle Remains Compelling As Management Prepares The Business For A New Chapter

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(12min)Comment(1)SummaryCrown Castle remains a soft ‘buy,’ as the $8.5B asset sale should substantially improve leverage and capital allocation flexibility.Despite recent revenue and profit declines, CCI’s core tower business remains cash-generative and defensible, with organic growth offsetting some contract headwinds.The DISH Wireless contract termination poses a near-term $220M revenue hit, but interest expense savings and cost cuts are expected to lift adjusted FFO post-sale.Relative to peers, CCI trades at a fair valuation, but post-sale net leverage improvement could justify a modest premium versus American Tower and SBA Communications.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » zhongguo/iStock via Getty Images Back in June of last year, one company that I decided to reaffirm as a ‘buy’ candidate was telecommunications infrastructure giant Crown Castle (CCI). At one point in the past, I had been veryThis article was written byDaniel Jones36.68K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.