Zayo: Reviewing Strategic Options

As suggested and suspected in the February 22 article here, Zayo has confirmed it is looking at strategic options for the company. Given the relatively strong position the group is fundamentally, and the still relatively lowly share price, there should be a decent outcome for shareholders.

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This is partly only the basis that analysts’s targets are $35 – well above where the stock is now, and that any corporate activity would have to deliver a premium to that price. Indeed, it is somewhat surprising that the shares are only up around 10%. Normally, one would have expected 20% plus. Perhaps the market has still not quite appreciated what the set up is here?

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Author: Zak Mir

Financial commentator, interviewer, technical analyst

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