UPDATE: RBC Capital Upgrades Cogent Communications (CCOI) to Outperform

May 9, 2021 6:49 PM EDT
Get Alerts CCOI Hot Sheet
Price: $77.52 -0.12%

Rating Summary:
    12 Buy, 14 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 13 | New: 24
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(Updated - May 10, 2021 4:52 AM EDT)

RBC Capital analyst Bora Lee upgraded Cogent Communications (NASDAQ: CCOI) from Sector Perform to Outperform with a price target of $84.00 (from $70.00).

The analyst comments "We increase our PT to $84/share and increase our ratingto Outperform (previous: Sector Perform) on factors including a) early signs of a potential recovery in the Corporate market with increasing vaccination rates, b) constructive International trends, c) shareholder return levels implied by our revised PT and the company’s dividend yield, and d) accretive cashflow benefits from the recent financing. Based on our 2021E/2022E estimates, CCOI shares trade at EV/EBITDA multiples of 21.4x/20.2x, which we find reasonable in light of the company’s high level of operating leverage, with tower-like flow-through margins, and path toward 200 bps of margin expansion annually."

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 $78.76 yesterday.


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