Jefferies Raises Price Target on GTT Communications (GTT) Following 3Q Release

Jefferies reiterated a Buy rating on GTT Communications (NYSE: GTT), and raised the price target to $30.00 (from $28.00), following the company's 3Q earnings report. Total revenue of $131.9mn was relatively in line with the Street. Adjusted EBITDA of $32.1mn topped the Street estimates of $30.8mn. Concurrent with earnings, GTT announced the acquisition of Hibernia Networks for $590mn, including $515mn in cash and $75mn in GTT shares.

Analyst Scott Goldman commented, "Results continue to reflect strong organic growth accompanied by margin expansion. The acquisition of Hibernia furthers GTT's strategic goals, adding new services and clients, while also bringing in fiber assets in fast growing market segments. GTT expects to remain acquisitive, targeting 10-20% annual revenue growth, inclusive of 8-10% organic growth. In our view, GTT remains an attractive undervalued growth story and we raise our target to $30."

For an analyst ratings summary and ratings history on GTT Communications click here. For more ratings news on GTT Communications click here.

Shares of GTT Communications closed at $23.50 yesterday.

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