Oppenheimer Believes ZAYO Won’t Stop Here

By Ryan Adsit

Oppenheimer analyst Timothy Horan assigned a Buy rating to Zayo Group Holdings (NYSE: ZAYO) yesterday and set a price target of $35. The company’s shares closed yesterday at $32.75, close to its 52-week high of $32.93.

According to TipRanks.com, Horan is a top 25 analyst with an average return of 7.8% and a 71.3% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding N.V., Boingo Wireless Inc., and Riverbed Technology.

Currently, the analyst consensus on Zayo Group Holdings is Moderate Buy and the average price target is $33.50, representing a 2.3% upside.

In a report issued on October 31, Goldman Sachs also maintained a Buy rating on the stock with a $39 price target.

Based on Zayo Group Holdings’ latest earnings report from June 30, the company posted quarterly revenue of $507.3M and quarterly net profit of -$30.9M. In comparison, last year the company earned revenue of $366.8M and had a net profit of -$15.2M.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2016, Richard Connor, a Director at ZAYO sold 15,000 shares for a total of $405,750.

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. Its reporting units are comprised of its strategic product groups. The company operates in following segments: Physical Infrastructure, Cloud and Connectivity and Others. The Physical Infrastructure segment provides dark fiber, mobile infrastructure and colocation services. The Cloud and Connectivity segment provides bandwidth infrastructure solutions over the metro, regional, and long-haul fiber networks. The Other segment is primarily comprised of zayo professional services. Zayo Group Holdings was founded by John Louis Scarano and Daniel P. Caruso on November 13, 2007 and is headquartered in Boulder, CO.