Uniti Group’s Growth Potential: Buy Rating Backed by Strategic Mergers and AI-Driven Fiber Expansion

Gregory Williams, an analyst from TD Cowen, maintained the Buy rating on Uniti Group (UNIT – Research Report). The associated price target remains the same with $9.00.

Gregory Williams has given his Buy rating due to a combination of factors that suggest significant growth potential for Uniti Group. The company is expected to deliver results in line with its 2025 guidance, with a strong focus on the Windstream merger and fiber deals driven by generative AI. These developments are anticipated to enhance the company’s market position and drive expansion in both the FTTH and Fiber Infrastructure segments, potentially doubling the equity fair value compared to current trading levels.
Additionally, Uniti Group is considered resilient to tariffs and economic downturns, benefiting from the ongoing AI demand cycle. The planned merger with Windstream is expected to close by July 1, which, despite complicating direct guidance comparisons, highlights promising aspects such as stable fiber revenue, reduced capital expenditure intensity, and positive free cash flow by 2025. Moreover, the acceleration of Kinetic’s FTTH deployment plans and strategic leadership appointments further reinforce the company’s growth trajectory, drawing parallels to successful industry transformations like Frontier’s copper-to-fiber conversion.