Key Takeaways
- • SpaceX is reportedly targeting 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 (CCI) gained more than 6.5% and American Tower (AMT) rose over 3% in overnight trading on the reports, while AT&T, Verizon and T-Mobile each fell 2% to 3%.
- • Crown Castle CEO Chris Hillabrant said on the earnings call the company is "talking to all parties," declining to name customers.
- • Analysts' consensus price targets imply about 19% upside for both towers, though Morningstar favors American Tower and SBA Communications for broader growth.
- • Carriers accounted for roughly 90% of Crown Castle's site rental revenue and 85% of American Tower's U.S. and Canada revenue in 2025, underscoring concentration risk.
Summary
Crown Castle and American Tower shares rallied overnight after reports that Elon Musk's SpaceX has opened discussions with tower operators for a nationwide wireless network. SpaceX reportedly seeks access to at least 80,000 U.S. sites, raising the prospect of multibillion-dollar leasing agreements at a time when traditional carriers are curbing spending. Crown Castle stock gained more than 6.5% overnight, and American Tower traded more than 3% higher. Shares of AT&T, Verizon and T-Mobile each lost between 2% and 3% as investors weighed the threat of a new, well-capitalized competitor. SpaceX recently acquired low-band 800 MHz spectrum valued at $8 billion, which supports its plan to combine satellite and ground-based networks.
Crown Castle operates about 40,000 U.S. tower sites, while American Tower operates 41,764 across the U.S. and Canada. During Crown Castle's Wednesday earnings call, CEO Chris Hillabrant declined to discuss customer-specific details regarding potential arrangements with SpaceX, Amazon.com and other satellite communications businesses, stating, "you can assume that we're talking to all parties." 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 could provide growth but carriers' leasing decisions remain a key exposure.
Analyst views are mixed on the fundamentals. According to Koyfin data, consensus price targets are $93.50 for Crown Castle and $215.74 for American Tower, each implying 19% upside from the last close. Among 22 analysts covering CCI, 21 rate it Buy or Hold, while all 25 covering AMT rate it Buy or Hold. Both trade at similar forward price-to-earnings multiples of roughly 27.4 times and 27.1 times, respectively. Morningstar analyst Michael Hodel said Crown Castle improved per-share cash flow in the third quarter despite a 7.2% year-on-year revenue decline, weak rental income and continued struggles in its services business. He maintained a $113 fair value estimate and a narrow economic moat rating, and expects 2026 leasing activity to reach the bottom of Crown Castle's projected range. Hodel suggested SpaceX could eventually become a customer, but he favors internationally diversified peers such as American Tower and SBA Communications.
Bernstein lowered its American Tower price target to $212 from $214 earlier this month while maintaining an Outperform rating, citing higher borrowing costs that could slow adjusted funds from operations per share growth over the next few years. The firm 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 was neutral, while AMT moved to neutral from bearish. Year to date, CCI has declined 11% and 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. During Crown Castle's Wednesday earnings call, CEO Chris Hillabrant declined to discuss customer-specific details regarding potential arrangements with SpaceX, Amazon.com and other satellite communications businesses, stating, "you can assume that we're talking to all parties." 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 could provide growth but carriers' leasing decisions remain a key exposure.
Analyst views are mixed on the fundamentals. According to Koyfin data, consensus price targets are $93.50 for Crown Castle and $215.74 for American Tower, each implying 19% upside from the last close. Among 22 analysts covering CCI, 21 rate it Buy or Hold, while all 25 covering AMT rate it Buy or Hold. Both trade at similar forward price-to-earnings multiples of roughly 27.4 times and 27.1 times, respectively. Morningstar analyst Michael Hodel said Crown Castle improved per-share cash flow in the third quarter despite a 7.2% year-on-year revenue decline, weak rental income and continued struggles in its services business. He maintained a $113 fair value estimate and a narrow economic moat rating, and expects 2026 leasing activity to reach the bottom of Crown Castle's projected range. Hodel suggested SpaceX could eventually become a customer, but he favors internationally diversified peers such as American Tower and SBA Communications.
Bernstein lowered its American Tower price target to $212 from $214 earlier this month while maintaining an Outperform rating, citing higher borrowing costs that could slow adjusted funds from operations per share growth over the next few years. The firm 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 was neutral, while AMT moved to neutral from bearish. Year to date, CCI has declined 11% and AMT has gained over 3%.
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