The higher price target comes after the Boulder, CO-based provider of bandwidth infrastructure posted better-than-expected revenue for the 2016 fiscal fourth quarter last week.
"ZAYO reported a solid FY4Q16, beating our revenue/EBITDA estimates by 2%/3% respectively, driven by upside from Allstream," Oppenheimer wrote in a note.
"Aside from lower than expected bookings due to a one-time contract cancellation/a delay in spending from a large customer (likely Alphabet's (GOOGL) Google), trends were solid with record installs/consistent churn," the firm added.
Additionally, the pace of installations accelerated, which will help accelerate revenue growth in fiscal 2017. But with gross installs greater than bookings, the service activation pipeline will decline, according to Oppenheimer.
"We expect this to continue in the near term and depending on larger deals in 2H16, this may cause a corresponding slowdown in FY18. However, we remain confident that the demand for fiber remains robust, and that ZAYO is well positioned," the firm added.
Shares of Zayo were up in mid-morning trading on Tuesday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and expanding profit margins.
But the team also finds weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ZAYO