Oppenheimer Remains a Buy on GTT Communications (GTT)

By Ryan Adsit

Oppenheimer analyst Timothy Horan maintained a Buy rating on GTT Communications (GTTResearch Report) today and set a price target of $62. The company’s shares opened today at $38.17.

Horan commented:

“GTT’s 3Q18 revenue of $449M missed our est. by $10M, but with multiple moving parts, organic growth was 1% YOY. FCF grew by a strong 27% and is the primary investment thesis. EBITDA margins beat by 70 bps suggesting integration is on track. Positively, management outlined new three-year annualized financial objectives: $3B in revenue, $900M in EBITDA and a minimum of $5 per share of FCF. GTT usually hits its targets in two years. We still see strong demand for high-quality, last-mile connectivity as multi-national enterprises move more workloads into the cloud, and GTT is well positioned here. The major risk is execution (on synergy realization) and an economic slowdown, as churn would pick up and enterprise IT spending would slow.”

According to TipRanks.com, Horan is a top 25 analyst with an average return of 16.9% and a 75.1% 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 Strong Buy, with a price target consensus of $57.33.

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The company has a one-year high of $62.32 and a one-year low of $31.45. Currently, GTT Communications has an average volume of 697.4K.

Based on the recent corporate insider activity of 142 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.

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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.