Cowen Reiterates Outperform on Zayo Group (ZAYO) Following 1Q
Cowen reiterated an Outperform rating on Zayo Group Holdings (NYSE: ZAYO), and raised the price target to $37.00 (from $36.00), following the company's 1Q earnings report. Total revenue was $366.8MM vs. the Street's $368.9MME. The company has a record backlog and is seeing a few “large deals” that management expects will translate to ZPI growth of >10%.
Analyst Colby Synesael commented, "Zayo reported mostly in-line F1Q16 results and sees a backlog/pipeline that it expects will drive record installs/bookings over the next three qtrs. The solid outlook was overshadowed though as ~156MM restricted shares will come to market Nov. 16 however thereafter should allow the stock to finally start to trade on fundamentals and we view as highly encouraging. Reiterate Outperform."
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Shares of Zayo Group Holdings closed at $24.52 yesterday.