Wells Fargo sees $35/share Zayo base case (update)

|About: Zayo Group Holdings, Inc. (ZAYO)|By:, SA News Editor

Wells Fargo sees a base case takeout value of $35 per share for Zayo (NYSE:ZAYO).

Last week, Zayo delayed its annual meeting to consider its strategic options and activist investor Starboard Value wrote a letter suggesting a sale might be the best option for shareholders.

Zayo shares are up 1.1% pre-market.

Update with more info from Wells Fargo's note:

Analyst Jennifer Fritzsche sees a 70% chance of a go-private deal and a 30% chance of Zayo rebounding on its own with operational execution.

The analyst calls the $35 base case "conservative" and the value represents a 27% upside to Friday's close.

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