Zegona Communications (LON:ZEG) Sets New 52-Week High – Time to Buy?

Zegona Communications plc (LON:ZEG) reached a new 52-week high on Monday . The stock traded as high as GBX 1,600 and last traded at GBX 1,600, with a volume of 830706 shares. The stock had previously closed at GBX 1,540.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ZEG. Berenberg Bank reissued a “buy” rating and set a GBX 1,350 price target on shares of Zegona Communications in a report on Tuesday, November 25th. Canaccord Genuity Group lifted their target price on Zegona Communications from GBX 1,500 to GBX 2,150 and gave the company a “buy” rating in a research report on Monday, January 12th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of GBX 1,683.33.

Zegona Communications Stock Performance

The company has a market cap of £12.13 billion, a price-to-earnings ratio of 145.45 and a beta of 2.80. The company has a fifty day moving average of GBX 1,358.84 and a two-hundred day moving average of GBX 1,185.81.

Zegona Communications declared that its board has approved a stock repurchase plan on Friday, December 12th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

About Zegona Communications

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.