There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Zayo Group Holdings (NYSE:ZAYO) and Box Inc (NYSE:BOX) with bullish sentiments.
Zayo Group Holdings (ZAYO)
In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on Zayo Group Holdings, with a price target of $42. The company’s shares closed on Friday at $34.66.
Horan said:
“Zayo came in below expectations on key metrics: organic growth, churn and installs. Organic growth dipped to 3% from 5% last quarter, mostly due to weakness in colocation. Positively, fiber solutions sales were strong, up ~4% excluding non- recurring equipment sales. We believe wireless carriers are set to ramp up capex spending in anticipation of 5G, a positive for Zayo’s unique fiber assets. Net installs were $1.5M in the quarter, 3% organic growth, which is short of Zayo’s 6-8% target growth rate. We believe the healthy demand environment should help propel Zayo to ~$8.5M exiting calendar ’18, in line with management expectations. The sales pipeline appears healthy and broad-based across customer verticals (hyperscale/ cloud/carriers/enterprise).”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 18.8% and a 79.5% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Limelight Networks.
Zayo Group Holdings has an analyst consensus of Strong Buy, with a price target consensus of $45.50, which is a 31.3% upside from current levels. In a report issued on August 29, Deutsche Bank also maintained a Buy rating on the stock.
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Box Inc (BOX)
Oppenheimer analyst Ittai Kidron maintained a Buy rating on Box Inc today and set a price target of $28. The company’s shares closed on Friday at $24.56.
Kidron commented:
“Last week we attended BoxWorks and came away positive on Box’s strategic direction, growing platform value, extending ecosystem, and most importantly, we exited more comfortable on its demand environment and add-on opportunities. Our survey of 25 customers (across 14 verticals and companies/user bases of all sizes) showed some YoY moderation in overall spending intentions for Box (vs. last year’s survey), but a deeper cut revealed Box’s focus customer base of large enterprises was stronger YoY with growing user penetration and increasing add-on interest. We’re encouraged our independent customer data/conversations are consistent with mgmt’s observations/strategic business planning. Ultimately, we believe Box is at a bottoming point for net expansion/retention and approaching an inflection point for improved business trends and better upside opportunities. We’d buy ahead of the turn.”
According to TipRanks.com, Kidron is a top 100 analyst with an average return of 26.8% and a 67.7% success rate. Kidron covers the Consumer Goods sector, focusing on stocks such as Juniper Networks, Arista Networks, and F5 Networks.
Box Inc has an analyst consensus of Moderate Buy, with a price target consensus of $29, implying a 18.1% upside from current levels. In a report issued on August 29, JMP Securities also maintained a Buy rating on the stock with a $32 price target.
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