UPDATE: D.A. Davidson Raises Price Target On Zayo Group Following Acquisition Of Latisys Holdings

In a report published Thursday, D.A. Davidson analyst James Moorman reiterated a Buy rating on

, and raised the price target from $33.00 to $35.00. In the report, D.A. Davidson noted, “ZAYO announced plans to acquire Latisys Holdings for $675 million or roughly 13.4x November's annualized EBITDA or 15.3x the September quarter. Latisys is a colocation and infrastructure as a service (IaaS) provider with eight datacenters in five markets, including Northern Virginia, Chicago, Denver, Orange County and London. The data centers have over 185,000 square feet of billable office space. We expect the purchase to be financed by senior unsecured debt and expect the deal to close before ZAYO reports its December quarter results; the company should provide more detailed information at that time.” Zayo Group closed on Wednesday at $30.22.