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SunTrust Maintains Buy On Zayo Group With $34 Price Target

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In a report published Thursday, SunTrust Robinson Humphrey analysts maintained their Buy rating and price target of $34 on Zayo Group Holdings Inc (NYSE: ZAYO). The company reported robust F3Q results, with the EBITDA and revenue well above the estimates.

The higher-than-expected revenue for F3Q was driven by stronger than estimated bookings, which is turn was due to robust project activity.

Trends in the dark fiber segment continue to be favorable, which the analysts believe would continue to drive high single-digit organic growth for Zayo, even in the absence of further acquisitions. The company is expected to achieve EBITDA of almost $1 billion in FY17.

"Looking forward to the June quarter, we think that bookings revert to the long-term trend line… Bookings are volatile and as such we wouldn't put too much emphasis on any given quarter," the analysts stated.

In addition, the analysts believe that "mixed commentary about June quarter bookings and M&A activity drove the stock lower, an overreaction in our opinion. Bookings can be volatile and a deceleration from the much stronger than expected March quarter activity is not surprising."

Latest Ratings for ZAYO

DateFirmActionFromTo
May 2019DowngradesOutperformMarket Perform
May 2019DowngradesBuyNeutral
May 2019DowngradesOutperformMarket Perform

View More Analyst Ratings for ZAYO
View the Latest Analyst Ratings

Posted-In: SunTrust Robinson HumphreyAnalyst Color Reiteration Analyst Ratings

 

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