Oppenheimer Believes Zayo Group Holdings (NYSE: ZAYO) Still Has Room to Grow

By Austin Angelo

In a report released today, Timothy Horan from Oppenheimer assigned a Buy rating to Zayo Group Holdings (NYSE: ZAYO), with a price target of $42. The company’s shares closed yesterday at $34.69, close to its 52-week high of $35.65.

Horan wrote:

“We expect Zayo to elect REIT status on January 1, 2019. This could be a catalyst for the company to be acquired, but management is in no rush. In this regard, we see announced consolidation (LVLT/CTL, CCI/Lightower) as catalysts for better industrywide pricing, but with a lag. Management expects to be able to gain share during these integration processes and to benefit from better pricing. Regardless, we see a REIT conversion as adding 2x-3x turns to the company’s relative valuation.”

According to TipRanks.com, Horan is a top 25 analyst with an average return of 13.3% and a 76.6% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Riverbed Technology.

Zayo Group Holdings has an analyst consensus of Strong Buy, with a price target consensus of $40.

The company has a one year high of $35.65 and a one year low of $28.15. Currently, Zayo Group Holdings has an average volume of 1.98M.

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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.