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LITTLE ROCK - Uniti Group Inc. (NASDAQ:UNIT), a real estate investment trust specializing in communications infrastructure with a market capitalization of $1.15 billion, announced today the appointment of John Harrobin as President of Kinetic, effective after the completion of Uniti’s merger with Windstream Holdings II, LLC, expected in the second half of 2025. According to InvestingPro data, the company currently trades at attractive valuation multiples and offers a substantial 12.9% dividend yield. Harrobin, who recently led a $3 billion consumer business unit at Frontier Communications, will oversee operations, market strategy, and financial aspects of Kinetic, one of the nation’s largest independent fiber-to-the-home platforms.
Kenny Gunderman, President and CEO of Uniti, expressed confidence in Harrobin’s leadership and industry expertise, anticipating significant value creation for customers, employees, and stakeholders. Harrobin himself is focused on enhancing Kinetic’s network and building a strong operating model to deliver consistent, superior results.
Harrobin’s career includes a tenure as Chief Marketing Officer at Audible and 18 years at Verizon Wireless, where he also served as CMO. He is recognized for his contributions to the industry, holding a BS from Villanova University and an MBA from Northwestern University’s Kellogg School of Management.
Uniti owns approximately 145,000 fiber route miles and 8.8 million fiber strand miles across the United States, generating annual revenues of $1.17 billion. The merger with Windstream is anticipated to further solidify the company’s position in the communications sector. Analyst price targets range from $3.50 to $9.00 per share, reflecting varied perspectives on the merger’s potential impact. InvestingPro analysis suggests the stock is currently undervalued, with multiple ProTips indicating positive financial health metrics.
The forward-looking statements included in Uniti’s announcement reflect management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. These include regulatory approvals, the realization of expected merger synergies, and the retention of employees during the merger process. For deeper insights into Uniti’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.
This news article is based on a press release statement from Uniti Group Inc.
In other recent news, Uniti Group reported its fourth-quarter 2024 earnings, slightly missing expectations with an earnings per share (EPS) of $0.09 compared to the forecasted $0.10, and revenue of $293.32 million, just under the anticipated $295.12 million. Despite the earnings miss, strategic developments, including the upcoming merger with Windstream, appear to have bolstered investor confidence. Shareholders have approved this merger with an affiliate of Windstream Holdings II, LLC, which will result in Uniti becoming an indirect, wholly-owned subsidiary of Windstream Parent, Inc. The merger is expected to close in the latter half of 2025, subject to customary conditions.
Furthermore, Uniti Group’s stock received an upgrade from Raymond James, moving from Outperform to Strong Buy, with a new price target of $8.00. This upgrade is attributed to the anticipated benefits from the Windstream merger and Uniti’s potential in the Fiber-to-the-Home market. Raymond James analyst Frank Louthan expressed confidence in Uniti’s long-term prospects within this growing market segment. In addition, Uniti Group has nominated Harold Zeitz, CEO of Ziply Fiber, to its Board of Directors as part of its strategy to expand its national fiber infrastructure. These developments reflect Uniti’s focus on strategic growth and value creation for shareholders.
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