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In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on GTT Communications (NYSE: GTT), with a price target of $62. The company’s shares opened today at $43.51.
Horan observed:
“Yesterday after the close, GTT announced the acquisition of Access Point, a cloud networking provider headquartered in North Carolina, for $40M. This fits in well to GTT’s existing North American operations and deepen its presence in key enterprise verticals (retail, manufacturing and energy). Importantly, the deal signals that management is confident in synergy execution; last quarter, GTT noted timing delays in network synergies that negatively impacted cost of revenues. We estimate that Access Point does $25M in revenue and with little EBITDA, although this should ramp to ~$8M in annualized EBITDA by 2Q19, with synergies. Our estimates are consistent with purchase multiples from previous small deals GTT has done: 1.5x revenue and 5x EBITDA (post-synergies).”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 19.0% and a 78.6% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
GTT Communications has an analyst consensus of Moderate Buy, with a price target consensus of $46.57.
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The company has a one-year high of $62.32 and a one-year low of $32.15. Currently, GTT Communications has an average volume of 634.6K.
Based on the recent corporate insider activity of 143 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GTT in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
GTT Communications, Inc. engages in the provision of cloud networking services to multinational clients. It offers broad portfolio of global services including private networking; Internet; optical transport; Software Defined Wide Area Networking; managed services; voice and unified communications; video transport; and access services.
