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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A New Perspective on Accounts Receivable
It’s important for business owners to take a close look at accounts receivable. Many see it as the result of growing sales and a safe, readily-liquid asset. While this perspective is not a surprise at all, the reality is that of all the assets a business could hold, A/R is among the worst.
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
A New Perspective on Accounts Receivable
It’s important for business owners to take a close look at accounts receivable. Many see it as the result of growing sales and a safe, readily-liquid asset. While this perspective is not a surprise at all, the reality is that of all the assets a business could hold, A/R is among the worst.
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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