Zegona (Buy, £7.85, +31%), Bonds: Overweight The Triple Transformation
Zegona is a company in transformation as they embark on a new strategic direction with Vodafone Spain. We believe the value creation from this transformation is not fully reflected in the share price despite the increase since flotation and initiate with a Buy and price target of £7.85 (+31%). Although the bonds have rallied, we also initiate with an Overweight as we think they should tighten further based on our view of asset cover (c.190%) and could well move to Investment Grade in due course.Zegona Communications is engaged in acquiring businesses in the European TMT sector with a 'Buy-Fix-Sell' strategy to deliver shareholder returns through fundamental business improvements. Co.'s first acquisition was the purchase of Telecable, the telecommunications operator in the Asturias region of Spain. Co.'s objectives include: executing a Buy-Fix-Sell strategy in the TMT sector; focusing on businesses that require active change and fundamental improvement to realize their full value; and targeting significant long term growth in shareholder value. Co. delivers value through a three step, Buy-Fix-Sell strategy.
Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.
New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:
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We provide debt research on:
- Pan European Telecom Services and Cable
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