We came across a bullish thesis on Uniti Group Inc. on High Yield Landlord’s Substack by Jussi Askola, CFA. In this article, we will summarize the bulls’ thesis on UNIT. Uniti Group Inc.’s share was trading at $8.13 as of February 10th. UNIT’s trailing and forward P/E were 1.15 and 11.86 respectively according to Yahoo Finance.
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Uniti (NASDAQ: UNIT) is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. UNIT has emerged as a compelling opportunity following its August 2025 merger with Windstream, which transformed the company from a passive fiber owner into an active owner/operator of fiber infrastructure.
This shift ended REIT eligibility but simplified operations and positioned UNIT for strategic asset monetizations. Today, UNIT controls a ~$9 billion fiber portfolio spanning roughly 217,000 route miles, divided across three segments: Kinetic, Fiber Infrastructure, and Uniti Solutions.
Kinetic, the residential and small business fiber unit, is capital-intensive and cash-consuming, whereas Fiber Infrastructure, leasing fiber to hyperscalers, carriers, and government agencies, represents the high-margin, recurring cash flow core of UNIT’s strategy. Uniti Solutions provides adjacent IT and cybersecurity services with attractive free cash flow.
Management, supported by activist investor Elliott (25% ownership), is focused on divesting non-core segments, particularly Kinetic, potentially realizing ~$6 billion, which would meaningfully deleverage the balance sheet and reduce annual interest expenses. A potential sale of Uniti Solutions could add another $1.5-2 billion in proceeds.
Post-merger refinancings and asset-backed financing have extended debt maturities beyond 2030, lowered interest costs, and improved liquidity, providing the flexibility to execute these dispositions while maintaining operational focus. The Fiber Infrastructure segment is uniquely positioned to capture the AI-driven surge in enterprise and hyperscaler fiber demand, with a total addressable market expected to quintuple by 2030 and IRU contracts providing upfront cash to offset capex.
Using a sum-of-the-parts approach, UNIT’s current EV-to-EBITDA multiple of 7.6x understates value, with Kinetic and Solutions monetizations and a repricing of Fiber Infrastructure suggesting significant upside. Elliott’s influence increases confidence that UNIT will unlock this value, making the stock an attractive, high-risk/high-reward investment in 2026.
Previously, we covered a bullish thesis on Weyerhaeuser Company (WY) by DB_SILVER_FOX in May 2025, which highlighted WY’s exposure to timberlands, inflation-protected cash flows, and optional upside from carbon markets. WY’s stock price has appreciated by approximately 6.77% since our coverage. Jussi Askola, CFA shares a similar bullish view but emphasizes Uniti Group’s (UNIT) fiber infrastructure transformation and AI-driven growth.
Uniti Group Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held UNIT at the end of the third quarter which was 28 in the previous quarter. While we acknowledge the risk and potential of UNIT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNIT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
