Uniti’s Q3 Was Typical: Business Is Good, but Little Moves the Needle

Uniti continues operating its business well and progressing to provide more communications infrastructure services to more customers. However, as is always the case, the set payments from Windstream dominate the financial results. In our view, any company-specific concern that has contributed to the stock’s recent decline is related to its debt position rather than a deteriorating environment for its operations. With no material near-term maturities and stable EBITDA, we don’t expect financial difficulties for Uniti unless disputes with Windstream return, which we don’t expect. We’re not changing our forecast and are maintaining our $12 fair value estimate.