Uniti Group (UNIT) Jumps 7.8% After Major Rural Fiber Grant and Post-Windstream Expansion Plans

• Kinetic, a business unit of Uniti, recently announced it is accelerating fiber broadband build plans across all 18 states after completing its merger with Windstream in August 2025, establishing Uniti as a key fiber provider focused on mission-critical connectivity.
• The company also revealed it has received preliminary approval for US$156.6 million in federal BEAD grants to deliver multi-gigabit fiber to roughly 52,000 rural locations, including nearly 50,000 in Georgia, underscoring its commitment to expanding high-speed internet access in underserved markets.
• We'll explore how Uniti's award of major BEAD grants for rural broadband could reshape its investment narrative and long-term growth outlook.

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Uniti Group Investment Narrative Recap

To be a Uniti Group shareholder today is to believe in the company’s push for large-scale fiber expansion, even as it faces declining legacy revenues and high near-term capital intensity during its transition. The recent federal BEAD grant approvals highlight management’s focus on rural fiber rollout, an important catalyst, but the most pressing risk, sustained high capital expenditure and rising construction costs, remains unchanged, meaning the news does not materially de-risk the path to stronger cash flows.

Among recent events, Uniti’s inclusion in the NASDAQ Telecom Index stands out as a reinforcement of its fiber-centric repositioning. This supports the investment case for those who view sector recognition and the merging of operations with Windstream as near-term positives, but the scale and timing of required investment in new fiber builds still shape both upside potential and execution risk.

However, investors should also keep in mind that, while the growth opportunity is real, the prospect of escalating construction costs and margin pressure could...

Read the full narrative on Uniti Group (it's free!)

Uniti Group's narrative projects $3.7 billion in revenue and $29.9 million in earnings by 2028. This requires 46.9% yearly revenue growth and a $4.1 million decrease in earnings from $34.0 million today.

Uncover how Uniti Group's forecasts yield a $8.25 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span a wide range, from US$1.10 up to US$8.25 per share. With fiber build-out costs expected to climb, participants should consider how projected capital intensity could impact returns, and examine these diverse viewpoints themselves.

Explore 4 other fair value estimates on Uniti Group - why the stock might be worth as much as 19% more than the current price!

Build Your Own Uniti Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Uniti Group research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Uniti Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Uniti Group's overall financial health at a glance.

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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.

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