Key Takeaways
- • SpaceX is reportedly seeking access to at least 80,000 U.S. cell sites for a nationwide wireless network, a move that could generate multibillion-dollar leasing deals for tower operators Crown Castle and American Tower.
- • Crown Castle shares rose more than 6.5% overnight and American Tower gained over 3%, while AT&T, Verizon and T-Mobile each fell 2% to 3% as investors weighed a new well-funded competitor.
- • Crown Castle CEO Chris Hillabrant said on the Wednesday earnings call the company is "talking to all parties" but declined to discuss customer-specific details.
- • Morningstar analyst Michael Hodel maintained a $113 fair value estimate on Crown Castle and favors American Tower and SBA Communications for broader international growth, though he sees SpaceX as a possible future customer.
- • Analyst consensus price targets imply roughly 19% upside for both stocks, with Crown Castle at $93.50 and American Tower at $215.74, per Koyfin data.
Summary
Crown Castle (CCI) and American Tower (AMT) rallied overnight after reports that Elon Musk's SpaceX (SPCX) had opened discussions with tower operators, fueling hopes for a new growth driver as traditional carriers curb spending. SpaceX wants access to at least 80,000 U.S. sites for its planned wireless network, which combines satellites with ground-based networks. The company recently acquired low-band 800 MHz spectrum worth $8 billion, which improves signal range and in-building penetration.
Crown Castle operates about 40,000 U.S. tower sites, while American Tower operates 41,764 across the U.S. and Canada. According to the article, AT&T, Verizon and T-Mobile accounted for roughly 90% of Crown Castle's site rental revenue in 2025 and 85% of American Tower's U.S. and Canada revenue, so a large new tenant would diversify the customer base, though reliance on major carriers remains a risk. During Crown Castle's Wednesday earnings call, CEO Chris Hillabrant declined to detail customer-specific arrangements involving SpaceX or Amazon.com (AMZN), saying "you can assume that we're talking to all parties."
Morningstar analyst Michael Hodel said Crown Castle improved per-share cash flow in the third quarter despite a 7.2% year-on-year drop in revenue, weaker rental income and continued struggles in its services business. He maintained a $113 fair value estimate and a narrow economic moat rating. Hodel expects 2026 leasing activity to reach the bottom of Crown Castle's projected range, noting Verizon has reduced planned network investment and T-Mobile is focused on network efficiency, but he suggested SpaceX could eventually become a customer. He favors internationally diversified peers American Tower and SBA Communications (SBAC).
Valuation metrics are similar for both tower REITs, with forward price-to-earnings multiples of about 27.4 times for Crown Castle and 27.1 times for American Tower. Koyfin data show analyst average price targets of $93.50 for Crown Castle and $215.74 for American Tower, each implying 19% upside from the last close. Of 22 analysts covering CCI, 21 rate it Buy or Hold, and all 25 covering AMT rate it Buy or Hold. Bernstein earlier this month lowered its American Tower target to $212 from $214 while keeping an Outperform rating, citing higher borrowing costs that could slow AFFO per share growth, but it sees SpaceX as a potential new nationwide tower customer. American Tower is scheduled to report Q3 earnings on Oct. 27, with analysts expecting $2.7 billion in revenue according to Fiscal.ai.
On Stocktwits, retail sentiment on CCI remained neutral, while sentiment on AMT moved to neutral from bearish. Year to date, CCI has declined 11%, while AMT has gained over 3%.
Crown Castle operates about 40,000 U.S. tower sites, while American Tower operates 41,764 across the U.S. and Canada. According to the article, AT&T, Verizon and T-Mobile accounted for roughly 90% of Crown Castle's site rental revenue in 2025 and 85% of American Tower's U.S. and Canada revenue, so a large new tenant would diversify the customer base, though reliance on major carriers remains a risk. During Crown Castle's Wednesday earnings call, CEO Chris Hillabrant declined to detail customer-specific arrangements involving SpaceX or Amazon.com (AMZN), saying "you can assume that we're talking to all parties."
Morningstar analyst Michael Hodel said Crown Castle improved per-share cash flow in the third quarter despite a 7.2% year-on-year drop in revenue, weaker rental income and continued struggles in its services business. He maintained a $113 fair value estimate and a narrow economic moat rating. Hodel expects 2026 leasing activity to reach the bottom of Crown Castle's projected range, noting Verizon has reduced planned network investment and T-Mobile is focused on network efficiency, but he suggested SpaceX could eventually become a customer. He favors internationally diversified peers American Tower and SBA Communications (SBAC).
Valuation metrics are similar for both tower REITs, with forward price-to-earnings multiples of about 27.4 times for Crown Castle and 27.1 times for American Tower. Koyfin data show analyst average price targets of $93.50 for Crown Castle and $215.74 for American Tower, each implying 19% upside from the last close. Of 22 analysts covering CCI, 21 rate it Buy or Hold, and all 25 covering AMT rate it Buy or Hold. Bernstein earlier this month lowered its American Tower target to $212 from $214 while keeping an Outperform rating, citing higher borrowing costs that could slow AFFO per share growth, but it sees SpaceX as a potential new nationwide tower customer. American Tower is scheduled to report Q3 earnings on Oct. 27, with analysts expecting $2.7 billion in revenue according to Fiscal.ai.
On Stocktwits, retail sentiment on CCI remained neutral, while sentiment on AMT moved to neutral from bearish. Year to date, CCI has declined 11%, while AMT has gained over 3%.
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