AD Stock Forecast & Price Target

Array Digital Infrastructure's stock outlook is bolstered by a significant increase in demand for its wireless towers, evidenced by a year-over-year surge of 125% in colocation applications. The company's rental revenues of $45.8 million reflect a robust 79% year-on-year growth, driven by new colocation agreements, which positions it well for sustaining long-term revenue growth. Furthermore, with a focus on enhancing network capacity and coverage, the anticipated increase in network spending from major carriers provides a favorable environment for Array's tower operations, priming it for further expansion in both EBITDA margins and overall financial performance.

Array Digital Infrastructure is facing a potential decline in net revenue growth, expected to drop to approximately 5% in 2026. Future equity income projections indicate a decrease to around $150 million, down from the previously estimated $160 million, reflecting ongoing challenges and competition within the wireless sector. Additionally, unfavorable outcomes related to T-Mobile's selection of towers may impede the company’s ability to achieve targeted EBITDA margins of 50%, exacerbating concerns about the viability of its rural portfolio in the face of increasing competition and satellite alternatives.