BTIG Cites Value In Zayo Group Holdings Inc. Downgrade

Zayo Group Holdings Inc.

, up nearly 39 percent since its October initial public offering and an analyst said Thursday it's valuation has become too rich. BTIG's Walter Piecyk downgraded Zayo to Neutral, from Buy, and said although he's "generally adverse" to valuation-based downgrades, Zayo's share price has "moved aggressively" since getting a dozen Buy or Outperform ratings Nov. 26. Zayo, which leases so-called dark fiber bandwidth to communications companies and Internet service providers, went public less than two months ago at $19 a share. Zayo closed Thursday up 4.6 percent at $30.57 a share. The company has produced fast growth by consolidating fiber companies in a field that had been wracked by over capacity in the early 2000s. Zayo made 32 acquisitions in the past eight years according to Piecyk, who said further acquisitions could drive the value of its stock higher. But Piecyk added that he's "not comfortable recommending a stock based on unverifiable acquisition opportunities."