BofA Securities Downgrades Cogent Communications (CCOI) to Underperform

BofA Securities analyst David Barden downgraded Cogent Communications (NASDAQ: CCOI) from Neutral to Underperform with a price target of $65.00 (from $75.00).

The analyst comments "CCOI remains deeply immersed in the Sprint network integration and monetizing the wavelength opportunity has fallen well behind schedule. Longer-term, we believe the wavelength business remains a growth opportunity for CCOI. While we wait for evidence to support this view, we are downgrading to Underperform (from Neutral). A positive inflection point for the business seems most likely in 2H25 while the 12-month forward business outlook does not support the stock’s current valuation, in our view. CCOI is currently trading at a sector-high 14x consensus ‘25E EV/EBITDA, well above the average of ~11.0x since 2022 (see Exhibit 2). Our new $65 PO (from $75) is based on the current 14x EV/EBITDA multiple on our ‘25E estimates, down from 16x."

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 $74.73 yesterday.

You May Also Be Interested In

• T1 Energy Inc. (TE) PT Raised to $9 at BTIG
• Deutsche Bank Downgrades Qifu Technology (QFIN) to Hold
• Alcon Inc. (ALC:SW) (ALC) PT Raised to CHF76.15 at Bernstein SocGen