NEW YORK (TheStreet) -- Shares of Crown Castle International Corp (CCI) are higher by 1.14% to $79.01 in early market trading after the real estate investment trust company had its rating raised to "buy" from "neutral" by analysts at Goldman Sachs this morning.
Goldman Sachs analysts raised its price target for shares to $94 from $86, and cited an attractive yield following the Houston, TX-based company's announced dividend increase last week.
The company announced a quarterly dividend scheduled for December 31 of 82 cents per share, up from its previous quarterly dividend of 35 cents per share. This represents a $3.28 annualized dividend and a dividend yield of 4.20%.
Also, Crown Castle had its rating cut to "neutral" from "buy" by equities research analysts at Nomura this morning.
Crown Castle owns, operates and leases shared wireless infrastructure, including towers and other structures, such as rooftops and antenna systems.
Separately, TheStreet Ratings team rates CROWN CASTLE INTL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CROWN CASTLE INTL CORP (CCI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, increase in stock price during the past year, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 24.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 133.3% when compared to the same quarter one year prior, rising from $45.84 million to $106.94 million.
- Net operating cash flow has significantly increased by 53.69% to $428.55 million when compared to the same quarter last year. In addition, CROWN CASTLE INTL CORP has also vastly surpassed the industry average cash flow growth rate of -64.23%.
- CROWN CASTLE INTL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CROWN CASTLE INTL CORP reported lower earnings of $0.28 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($0.90 versus $0.28).
- You can view the full analysis from the report here: CCI Ratings Report