DA Davidson Downgrades Cogent Communications (CCOI) to Underperform; Q1 Review - Growth Slowing

DA Davidson downgraded Cogent Communications (NASDAQ: CCOI) from Neutral to Underperform with a price target of $18.00.

Analyst, Donna Jaegers, said, "CCOI reported revenues of $76.9 million for Q1, which was a 4.7% increase year-over-year (YoY) and a 2.8% decrease sequentially. We had expected revenues of $78.5 million, but there was slower growth than we expected in the non-MegaUpload business."

"With the stock at 9.6x our 2012 EV/EBITDA estimate, we think CCOI is ahead of its fundamentals and are sticking with our $18 price target. There is not tremendous downside, but we think there are better investment opportunities in telecom." (FY12 EPS estimate cut from $0.18 to $0.10 and FY13 from $0.55 to $0.52)

For an analyst ratings summary and ratings history on Cogent Communications click here. For more ratings news on Cogent Communications click here.

Shares of Cogent Communications closed at $19.32 yesterday.

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