3 REITs That Were Hit With Downgrades This Week

Analysts downgrade a stock for several reasons. The stock may have risen so much in recent weeks that the analyst feels the stock is no longer a good value relative to its price, or the analyst feels a company is unlikely to perform well in the coming months. This could be because of increased competition, a decline in its products or services, a perceived downturn in the general economy or the resignation of a longstanding company insider.

Whatever the reasons, investors holding positions in downgraded stocks hate to see their shares fall after the downgrade. But it happens often.

Take a look at three real estate investment trusts (REITs) that received analyst downgrades this week, including one that differed greatly from some other recent analyst calls.

Crown Castle Inc. (NYSE:CCI) is a Houston-based specialized REIT that focuses on owning, operating and long-term leasing of cell towers. Crown Castle owns more than 40,000 cell towers and 85,000 route miles of fiber and has 120,000 small cells in its portfolio.

Crown Castle works with businesses and governments to design and build solutions that meet connectivity needs like wireless coverage and custom fiber optic networks. It has a market cap of $50.84 billion, making it one of the largest REITs in the U.S.

On Oct. 16, RBC Capital Markets analyst Jonathan Atkin downgraded Crown Castle from Outperform to Sector Perform and lowered the price target from $125 to $100. Atkin’s negative view seems to be shared by Wells Fargo analyst Eric Luebchow, who on Oct. 17 maintained an Underweight position on Crown Castle and lowered the price target from $110 to $100.

Crown Castle shares have fallen from $147 in February to a recent close of $94.58. Year to date its total return is negative 28.22%.

Medical Properties Trust Inc. (NYSE:MPW) is a Birmingham, Alabama-based healthcare REIT that owns and operates 444 general acute care and other properties across the U.S. and in nine other countries, with locations in Europe and…