Uniti Group’s Strategic Growth and Positive Outlook: Buy Rating Affirmed by Gregory Williams

Analyst Gregory Williams of TD Cowen maintained a Buy rating on Uniti Group (UNIT – Research Report), retaining the price target of $9.00.

Gregory Williams has given his Buy rating due to a combination of factors that highlight Uniti Group’s strategic positioning and growth potential. The company posted results for the fourth quarter of 2024 that were in line with expectations and provided guidance for 2025 that reflects both its standalone operations and the anticipated merger with Windstream. This guidance suggests a positive outlook, with Uniti Fiber revenue expected to grow by 4-6% organically, and a significant acceleration in FTTH deployment by Kinetic, which is part of the company’s growth strategy.
Moreover, the demand for fiber infrastructure, particularly driven by AI Training connectivity, remains strong, with a promising future as the market transitions towards the Inference phase. This shift is expected to increase the total addressable market significantly by 2030, offering higher margins and more cash flow opportunities for Uniti. The company’s disciplined approach to capitalizing on these opportunities, along with a lack of irrational competition in the market, supports the Buy rating. Additionally, the potential for increased wireless bookings and the strategic expansion of Uniti’s network further underpin the positive outlook for the company’s financial performance.

Williams covers the Communication Services sector, focusing on stocks such as AT&T, Altice Usa, and Verizon. According to TipRanks, Williams has an average return of -0.4% and a 52.17% success rate on recommended stocks.

In another report released today, Raymond James also upgraded the stock to a Buy with a $8.00 price target.