BofA Remain Bullish on Unity Group LLC (UNIT); Reiterates 'Outperform' Rating

Unity Group LLC (NASDAQ:UNIT) is one of the 13 Oversold Value Stocks to Invest in Now.

BofA Securities reaffirmed its ‘Underperform’ rating on Unity Group LLC (NASDAQ:UNIT) on August 7, 2025. Yet the analyst raised its price target from $3.50 to $7.50, indicating a slight upside.

The price revision by the investment firm reflects an 8x multiple on Unity Group LLC (NASDAQ:UNIT)’s 2026 estimated adjusted EBITDA of $1.3 billion. This higher target reflects the company’s growing fiber broadband market share, supported by investor interest in fiber assets. Meanwhile, despite the company’s healthy liquidity, the analyst raised concerns over the company’s pro forma adjusted EBITDA, which stands at $1.5 billion against $8.3 billion in net debt, implying 5.5x leverage.

Although Unity Group LLC (NASDAQ:UNIT) is well-positioned to accelerate its fiber build and tap Hyperscaler demand, its high leverage tempers its growth expectations.

Through its Wholesale, Enterprise, and Fiber Solutions segments, Unity Group LLC (NASDAQ:UNIT) delivers fiber-based connectivity solutions across the U.S. It is one of the oversold stocks.

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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