BOULDER — Zayo Group Holdings Inc. (NYSE: ZAYO), which has decided to split into two public companies — Zayo Infrastructure, or InfraCo, and EnterpriseCo — was 17.8 percent lower premarket after its announcement and its earnings miss.
Several analysts downgraded Zayo and reevaluated its price targets after the announcement.
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UBS dropped its price target from $45 to $32; however, it added that the planned split could unlock future value in the infrastructure business.
Cowen analyst Colby Synesael was harsher, saying that management’s credibility is near zero and that results were disappointing again. He kept Zayo’s status at Outperform but trimmed its price target from $43 to $37.
At time of publication, Zayo’s stock price had fallen 23 percent from market close to $23.39. Before Zayo’s announcement, its stock price was $30.39.
BOULDER — Zayo Group Holdings Inc. (NYSE: ZAYO), which has decided to split into two public companies — Zayo Infrastructure, or InfraCo, and EnterpriseCo — was 17.8 percent lower premarket after its announcement and its earnings miss.
Several analysts downgraded Zayo and reevaluated its price targets after the announcement.
Sponsored Content
Growth Strategy Summit with Jessica Dewell
How often do you validate or revise your business’s growth strategy? If your first thought was “Not enough” Join us for the for the Growth Strategy Summit with Jessica Dewell, owner of Red Direction.
Jess advises, facilitates, and keynotes about business excellence and what it means to lead today. Adept at recognizing underutilized knowledge, she combines such information with team members’ passion to create strong connections.
UBS dropped its price target from $45 to $32; however, it added that the planned split could unlock future value in the infrastructure business.
Cowen analyst Colby Synesael was harsher, saying that management’s credibility is near zero and that results were disappointing again. He kept Zayo’s status at Outperform but trimmed its price target from $43 to $37.
At time of publication, Zayo’s stock price had fallen 23 percent from market close to $23.39. Before Zayo’s announcement, its stock price was $30.39.
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