Array Digital Infrastructure: Strong Assets, But The Easy Upside Has Played Out

Myriam Alvarez3.33K FollowersFollow5ShareSavePlay(10min)CommentsSummaryArray Digital Infrastructure now combines towers, monetizable retained spectrum, and cash-generating minority investments after exiting its legacy wireless business.Tower operations have improved sharply. There were 4,572 colocations, but they remain mostly concentrated on T-Mobile.AD’s pending Verizon and T-Mobile spectrum deals will lead to an extremely liquid balance sheet and a strong cash flow to support its future tower operations.However, after adjusting for pending proceeds and unconsolidated investment cash flows, AD’s valuation now seems quite optimistic.I concede that AD’s C-band assets give it optionality. Yet, at this point, I feel there are now too many assumptions. Hence, I lean neutral this time around.gdinMika/E+ via Getty Images Array Digital Infrastructure, Inc. (AD) is a company that operates under three pillars: a US communications tower portfolio, retained spectrum that is still being monetized, and investment interests that generate cash. AD's towers are mostly located in rural andThis article was written byMyriam Alvarez3.33K FollowersFollowMy name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science from Ohio University, Athens, OH, USA, a graduate degree in Business Management from Universidad Andina Simon Bolivar, Quito, Ecuador, and the Ph.D. degree in computer applications from the University of Alicante, Spain.Disclosure: I collaborate professionally with Edgar Torres H, who is also an author on Seeking Alpha. Our analyses are conducted independently, and we adhere to Seeking Alpha's Shared Association Guidelines.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.