Zayo stock prices slip after lackluster earnings, split announcement

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.

UBS dropped its price target from $45 to $32; however, it added that the planned split could unlock future value in the infrastructure business.

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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.