GTT Communications (GTT) Stock Slumping Today Despite Pacific Crest Price Target Raise

NEW YORK (TheStreet) -- GTT Communications (GTT) stock is down 0.06% to $16.78 in morning trading Wednesday despite Pacific Crest's increase in price target to $24 from $18, while reiterating its "outperform" rating.

GTT Communications, formerly Global Telecom & Technology, is a global network integrator providing a portfolio of Wide-Area Network (WAN), dedicated Internet access and managed data services.

"We are raising our estimates and have layered in the MegaPath acquisition as GTT anticipates an early-April close," analysts said, adding that MegaPath should help drive improving margins due to higher managed service revenue mix.  

GTT Communications recently acquired MegaPath, a leading cloud communications company, in February, and UNSi, a competitive business-focused service provider, last October.  

"As GTT integrates UNSi and MegaPath, it expects MegaPath's higher-margin managed services business to more than offset the lower-margin UNSi business," analysts noted.

In addition, GTT anticipates to have 100 sales representatives by the close of 2015, Pacific Crest added.  

Analysts forecast earnings of 35 cents per share for GTT's 2015 fiscal year.  

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