JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Deutsche Bank (ETR:DBKGn) has raised its price target on Zegona Communications (LON:ZEG) to GBP15.50 from GBP10.30 while maintaining a Buy rating on the stock.
The price target increase follows a 40% rise in Zegona’s share price over the past two months, with Deutsche Bank still seeing more than 60% total return potential from current levels.
Deutsche Bank has upgraded its operating free cash flow estimates for Zegona by 25% following the company’s combined fiscal year and first quarter results.
The bank cites potential upside from a simplification of Zegona’s capital structure, settling of Vodafone (NASDAQ:VOD) preference shares, and continued operational progress as key factors supporting its outlook.
Despite projecting some slowing in operating free cash flow growth, Deutsche Bank notes Zegona trades at a significant discount to the sector, with a 2027 unlevered free cash flow yield of 11.6% compared to the sector average of 6.5%.
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