TD Cowen Reaffirms Buy on Uniti Group Inc. (UNIT) with a $9 Target

Uniti Group Inc. (NASDAQ:UNIT) is among the fundamentally strong penny stocks to invest in. Analysts at TD Cowen have reaffirmed their “Buy” rating on Uniti Group Inc. (NASDAQ:UNIT), while maintaining a price target of $9.00. With such an optimistic outlook, the firm has reiterated its label as the top investment idea in the sector, alongside T-Mobile and Equinix.

From in-line revenue and EBITDA during the first quarter to an impressive dividend yield of around 14%, the company’s financials tell a somewhat compelling story. While the results matched key guidance metrics, the stock nearly fell. What the analysts believe is that the dip is due to a potential misunderstanding of pro forma financials and investor hesitation following the company’s change to a REIT status. However, these will impact Uniti Group Inc. (NASDAQ:UNIT) only in the short run.

As TD Cowen underscores, the company demonstrates solid bookings, with strand counts sold to hyperscalers assumed to be at least 30 times higher than they were several years ago, all thanks to the demand for generative AI. Having said that, analysts remain confident in what they call “twin engines of commercial and residential fiber super-cycles,” anticipating more than 90% upside for UNIT.

Uniti Group Inc. (NASDAQ:UNIT) is a U.S.-based internally managed real estate investment trust that provides fiber and other wireless solutions. With a market capitalization of $1.068 billion, the company focuses on the acquisition and development of mission-critical communications infrastructure.

While we acknowledge the potential of UNIT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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