Zegona Communications (LON:ZEG) Reaches New 52-Week High – Still a Buy?

Zegona Communications plc (LON:ZEG) shares reached a new 52-week high on Tuesday . The company traded as high as GBX 1,860 and last traded at GBX 1,795, with a volume of 44337176 shares changing hands. The stock had previously closed at GBX 1,815.

Analysts Set New Price Targets

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

Zegona Communications Trading Up 1.4%

The firm has a market capitalization of £4.24 billion, a price-to-earnings ratio of 165.45 and a beta of 2.80. The firm’s 50-day moving average is GBX 1,520.12 and its 200 day moving average is GBX 1,338.28.

Zegona Communications declared that its board has initiated a stock buyback plan on Friday, December 12th that allows the company to buyback 0 shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Zegona Communications Company Profile

Zegona is publicly listed on the Main Market of the LSE. It was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns. Zegona is led by former Virgin Media executives Eamonn O’Hare and Robert Samuelson.

In 2024, Zegona completed the acquisition of Vodafone Spain. Vodafone Spain is one of the leading telecoms networks in Spain but following shifts in customer sentiment, Zegona believes the future of the business lies in right-sizing the cost and capex base in the business to the local market context, operating the assets more efficiently and driving value for money service propositions.