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Fly News Breaks for March 5, 2019
Mar 5, 2019 | 07:40 EDT
As previously reported, Wells Fargo analyst Jennifer Fritzsche downgraded Uniti Group (UNIT) to Underperform from Market Perform and lowered her price target on the shares to $8 from $17. The analyst notes that the company released an 8K which indicated a significant cut in the dividend. Fritzsche believes the February 15 ruling against Windstream (WIN) in its case versus Aurelius Capital Management, and the ripple effect on Uniti including a delay of the company's Q4 earnings and potential default in its credit agreement, has introduced a great degree of uncertainty into the story. While the analyst continues to believe Uniti's fiber assets are attractive, the company's path toward diversifying away from its Windstream exposure has become more difficult to model.