Zegona Communications (LON:ZEG) Hits New 12-Month High on Analyst Upgrade

Zegona Communications plc (LON:ZEG)’s share price reached a new 52-week high during mid-day trading on Monday after Canaccord Genuity Group raised their price target on the stock from GBX 1,500 to GBX 2,150. Canaccord Genuity Group currently has a buy rating on the stock. Zegona Communications traded as high as GBX 1,480 and last traded at GBX 1,480, with a volume of 2925582 shares traded. The stock had previously closed at GBX 1,340.87.

Separately, Berenberg Bank reissued a “buy” rating and set a GBX 1,350 price objective on shares of Zegona Communications in a report on Tuesday, November 25th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of GBX 1,683.33.

Zegona Communications Stock Up 10.4%

The firm has a 50 day moving average of GBX 1,331.54 and a 200 day moving average of GBX 1,161.80. The firm has a market cap of £11.22 billion, a PE ratio of 134.55 and a beta of 2.80.

Zegona Communications announced that its board has approved a stock buyback plan on Friday, December 12th that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

Zegona Communications Company Profile

Zegona is a British company investing strategically across the Europe with the objective of acquiring businesses in the European TMT sector, using a “Buy-Fix-Sell” strategy to deliver attractive shareholder returns.

The first acquisition made by Zegona was of Asturian telecommunications operator Telecable in 2015. Telecable was later sold to Euskaltel in 2017, at which point Zegona acquired a 15% ownership of Euskaltel.

Zegona has subsequently increased its disclosable interest in Euskaltel to over 20%, becoming the largest shareholder in the company.