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

Shares of Uniti Group Inc 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 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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