Investing.com — Wolfe Research downgraded Crown Castle Inc. from “Outperform” to “Peer Perform,” citing weaker long-term growth prospects following the default of lease payments from DISH Network and rising interest rates.

The brokerage also withdrew its $94 price target under firm policy after the stock approached that level, trading at $92.34 as of May 19. Analysts said the company’s investment thesis had materially weakened since their bullish call in September 2025.

Wolfe admitted it underestimated the risk of a DISH lease default, which has now significantly reduced Crown Castle’s projected earnings and sustainable growth profile. The firm cut its 2027 AFFO estimate by roughly 14%, while expected long-term growth declined from 6.9% to 5.4%.

Analysts noted that the loss of DISH revenue not only hurt current rental income but also eliminated a contributor to annual organic growth. As a result, Crown Castle’s valuation metrics have become less attractive relative to peers in the cell tower, data center, and net lease REIT sectors.

The report highlighted that Crown Castle recently completed the sale of its fiber and small-cell business, with proceeds earmarked partly for debt reduction and $1 billion in share repurchases. Wolfe cautioned, however, that buyback support for the stock may fade over time.

Looking ahead, the firm identified several catalysts that could influence the stock, including ongoing litigation tied to unpaid DISH lease obligations. Analysts said a favorable settlement could provide meaningful upside, though they believe some optimism may already be reflected in the share price.

The report also pointed to growing investor attention on SpaceX and its Starlink satellite network. Wolfe said current satellite systems remain complementary to traditional wireless towers, but improvements in future satellite technology could eventually intensify competition with terrestrial infrastructure providers.

Among the key risks outlined were higher interest rates, technological disruption to cell towers, and uncertainty surrounding industry consolidation. Wolfe added that any potential privatization deals involving other tower operators, such as SBA Communications, could still support valuations across the sector.