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

Zegona Communications plc (LON:ZEG)’s share price reached a new 52-week high during trading on Thursday . The company traded as high as GBX 1,650 and last traded at GBX 1,620, with a volume of 656213 shares. The stock had previously closed at GBX 1,620.

Wall Street Analysts Forecast Growth

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

Zegona Communications Stock Performance

The firm has a market cap of £12.28 billion, a price-to-earnings ratio of 147.27 and a beta of 2.80. The business’s 50 day moving average price is GBX 1,425.74 and its 200 day moving average price is GBX 1,231.20.

Zegona Communications announced that its board has approved a stock buyback plan on Friday, December 12th that permits the company to buyback 0 outstanding shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board 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.