A Look at Uniti Group’s (UNIT) Valuation After Strong Earnings Growth and Upgraded 2025 Outlook

Uniti Group (UNIT) just delivered third quarter results that showed revenue and net income surging sharply from a year ago. The company also raised its earnings guidance for 2025, signaling greater confidence in its outlook.

See our latest analysis for Uniti Group.

The upbeat earnings and raised 2025 outlook have helped Uniti Group regain some ground, with the latest month showing an 11.2% share price return. However, momentum remains fragile given a steep 1-year total shareholder return of -32%, which reminds investors that the recent rebound follows a tough stretch rather than a full turnaround.

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With a sizable jump in revenue and profit, along with an upgraded forecast, the big question now is whether Uniti Group’s current share price offers value or if investors have already priced in all that future growth.

Most Popular Narrative: 15.4% Undervalued

The most widely followed narrative places Uniti Group's fair value at $7.42 per share, notably above the latest close of $6.28. This perspective frames Uniti as undervalued in the context of its projected expansion and ongoing business transformation.

“Aggressive expansion of fiber-to-the-home coverage, with plans to reach 3.5 million homes passed and 75% fiber-based revenue by 2029, positions Uniti to capture accelerating demand from growing data consumption, 5G, and AI adoption. This supports long-term recurring revenue growth and operating margin improvement. A robust and expanding deal pipeline with hyperscalers ($1.5 billion in total contract value, 40% of the sales funnel), along with rising lease-up opportunities and cross-selling with Windstream, is expected to drive higher-margin, low-capex, long-term contracts. This may boost EBITDA and net earnings as industry demand for bandwidth and low-latency networks escalates.”

Read the complete narrative.

Want a peek inside the numbers behind this bullish outlook? The narrative’s value hinges on ambitious future revenue growth, tighter margins, and surprising long-term profit assumptions. Ready to uncover which bold projections drive this target?

Result: Fair Value of $7.42 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued declines in legacy services and ongoing high construction costs could challenge Uniti Group's growth trajectory and reduce near-term earnings certainty.

Find out about the key risks to this Uniti Group narrative.

Build Your Own Uniti Group Narrative

If you see the numbers differently, or want to dig deeper into the data yourself, you can easily create a personal narrative in just a few minutes. Do it your way.

A great starting point for your Uniti Group research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.