Uniti Group Downgraded By Deutsche Bank, But Firm Has 'Constructive' View On REIT

Shares of Uniti Group Inc (NASDAQ: UNIT), a REIT supplying wireless infrastructure solutions for the communications industry, have a balanced risk-reward profile, according to Deutsche Bank Securities.

The Analyst

Analyst Matthew Niknam downgraded shares of Uniti Group from Buy to Hold and nudged up his price target from $20 to $21.

The Thesis

Uniti shares have run up since the company reported its fourth-quarter results in early March, outperforming the S&P 500 Index by 50 percent, Niknam said in a note.

The analyst forecast limited upside to Deutsche Bank's new $21 price target. 

Niknam said he is constructive on the company's execution as well as its strategy toward revenue diversification. The company is facing unique set of circumstances, with about two-thirds of its revenue and a majority of its adjusted funds from operations coming from its Windstream Holdings Inc (NASDAQ: WIN) business, the analyst said. 

Deutsche Bank views the company's achievement, both organically and inorganically, as positive.

The Price Action

Uniti shares have added over 18 percent year-to-date. The stock was down 1.38 percent at the time of publication Monday at $20.02. 

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