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 Remain Bullish on Unity Group LLC (UNIT); Reiterates ‘Outperform’ Rating

A close-up of a telecom tower amid a backdrop of urban skylines, symbolizing the growth and development of telecommunications services.

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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNIT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Oil Refinery Stocks to Buy Right Now and 13 Hot Oil Stocks to Buy Now.

Disclosure: None.