AD Stock Forecast & Price Target

Array Digital Infrastructure's stock outlook is supported by a significant surge in demand for its tower operations, evidenced by a year-over-year increase of 125% in colocation applications and 110% in amendment applications. The company anticipates a near-term acceleration in colocation revenue, with base-case scenarios projecting approximately 3% long-term growth in total revenue, while bull-case scenarios suggest potential growth exceeding 3% alongside achieving EBITDA margins of 50% earlier than expected. Additionally, rental revenues of $45.8 million, which grew by 79% year-over-year, highlight Array's strong financial performance and the positive impact of strategic contracts with major carriers.

Array Digital Infrastructure's stock outlook is negatively impacted by anticipated net revenue growth decreasing to around 5% in 2026, coupled with a predicted decline in future equity income from approximately $160 million to $150 million. The company faces significant competitive pressures, particularly in its rural portfolio, which may be disrupted by peers and face decreased demand due to satellite competition. Additionally, unfavorable outcomes related to T-Mobile's selection of towers threaten Array's ability to achieve its target EBITDA margins of 50%, thereby applying further pressure on its financial metrics.