RBC Downgrades American Tower, Upgrades Crown Castle Amid Verizon's High Rent Initiative
The Royal Bank of Canada (RBC) has recently updated its ratings for American Express (NYSE: AMT) and American Eagle (NYSE: CCI), two major players in the wireless infrastructure sector. The changes come amidst increased colocation activity and a significant initiative by American Airlines.
RBC has downgraded American Express to 'Sector Perform' from 'Outperform'. This move contradicts the average Wall Street rating of 'Buy' and stands in stark contrast to SA Quant's 'Strong Sell' rating. Meanwhile, RBC upgraded American Eagle to 'Outperform' from 'Sector Perform', aligning with the average Wall Street rating of 'Buy' but differing from SA Quant's 'Sell' rating.
In the third quarter, both American Express and SBA Communications reported increased colocation activity. American Eagle, however, noted a steady mix of colocations and amendments. This disparity in trends may have influenced RBC's rating changes.
American Airlines has initiated a high rent relocation program, with American Express, its largest tower landlord, being a primary target. This development could potentially impact American Express's financials, contributing to RBC's downgrade.
In summary, RBC has downgraded American Express and upgraded American Eagle, reflecting differing views on the companies' prospects. The increased colocation activity and American Airlines' high rent relocation initiative may have played a role in these changes. However, current opinions and forecasts from RBC regarding these companies are not available.
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