Array Digital Infrastructure (AD): Revisiting Valuation After a Recent Share Price Rebound and Ongoing T-Mobile Deal Progress
Array Digital Infrastructure (AD) has quietly turned in a mixed stretch for shareholders, with the stock gaining about 14% over the past month but still down roughly 20% year to date.
See our latest analysis for Array Digital Infrastructure.
That recent 13.7% 1 month share price return looks more like a relief rally than a full trend reversal, given the share price is still down about 20% year to date while the 3 year total shareholder return remains very strong.
If Array’s move has you rethinking your telecom exposure, it could be a good moment to explore other US-listed high growth tech and AI stocks that are driving the next leg of digital connectivity.
With the stock still trading below analysts’ targets but boasting a powerful three year track record despite shrinking revenues, investors now face a key question: is Array undervalued or already pricing in its next phase of growth?
Most Popular Narrative Narrative: 7.3% Undervalued
With Array Digital Infrastructure last closing at 50.52 dollars against a narrative fair value of 54.50 dollars, the story hinges on how future earnings are built.
The anticipated mid 2025 closing of the transaction with T Mobile, subject to regulatory approval, is expected to provide UScellular with significant proceeds, which could impact earnings positively by paying down debt and potentially declaring special dividends. The expansion of UScellular's fiber program, having already expanded its footprint by 30% in the last three years, presents opportunities for future revenue growth as more addresses are delivered and internet penetration increases.
Want to see why a shrinking revenue base still supports a richer future valuation? The narrative leans on margin rebuild, disciplined discounting and surprisingly punchy earnings assumptions. Curious which specific profit shift justifies that price tag?
Result: Fair Value of $54.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, regulatory delays to the T Mobile deal, or fiercer price competition from larger carriers, could derail margin rebuild and challenge that undervalued thesis.
Find out about the key risks to this Array Digital Infrastructure narrative.
Build Your Own Array Digital Infrastructure Narrative
If you are unconvinced by this storyline or would rather dig into the numbers yourself, you can build a custom view in under three minutes: Do it your way.
A great starting point for your Array Digital Infrastructure research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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