12:57 PM EDT, 03/25/2024 (MT Newswires) -- Uniti Group ( UNIT ) has the potential to outperform its peers if it successfully diversifies its customer base through mergers and the "efficient" use of existing telecommunications network assets, RBC Capital Markets said in a note Monday.

Uniti earlier this month settled a long-running dispute with former telecom parent company Windstream, which currently is reorganizing under Chapter 11 bankruptcy protection. The deal revises terms of Windstream's lease agreement with Uniti.

The RBC analysts said the new master lease with Windstream allows Uniti to add new business opportunities while maintaining a "stable" revenue base. The deal also allows Uniti to sell its competitive local exchange carrier assets and using the proceeds to further expand the REIT in new directions, they said.

Uniti late last month also forecast 2024 revenue in a range of $1.15 billion to $1.17 billion. RBC expects $1.16 billion, down from previous estimate of $1.19 billion.

RBC reiterated its sector perform rating with a $5.50 price target.

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