In a report released yesterday, Timothy Horan from Oppenheimer maintained a Buy rating on Zayo Group Holdings (NYSE: ZAYO), with a price target of $42. The company’s shares closed yesterday at $37.50.
Horan said:
“Organic growth dipped to 3%, mostly due to an uptick in churn. Churn is key to achieving the 6-8% organic growth target, and management is confident that ~20% of churn can be addressed through a ramped-up sales force. Zayo has invested significantly in its sales force, which is now up to 303 quota-bearing reps, up from 274 in 3Q. We are confident that sales productivity will improve and lead to bookings above $8.5M. Absent last quarter’s record bookings, the $8M in bookings would have been a record. Zayo’s fiber solutions business is showing strong momentum, with broad-based demand in each vertical. EBITDA, ZAYO is one of the least expensive stocks in our coverage, particularly versus REITS.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 18.3% and a 78.5% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Limelight Networks.
The word on The Street in general, suggests a Hold analyst consensus rating for Zayo Group Holdings.
See today’s analyst top recommended stocks >>
Based on Zayo Group Holdings’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $23.4 million. In comparison, last year the company earned revenue of $638 million and had a net profit of $23.2 million.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock.
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.
Zayo Group Holdings, Inc. provides bandwidth infrastructure services in the U.S. and Europe. Its products and services enable mission critical, high-bandwidth applications, such as cloud-based computing, video, mobile, social media, machine-to-machine connectivity, and other bandwidth-intensive applications.
