Cowen analyst Colby Synesael reiterated an Outperform rating but lowered the price target on Cogent Communications (NASDAQ: CCOI) to $38.00 (from $45.00) with Q2 gross margins light. The firm sees better results in the 2nd-half.

Synesael commented, "CCOI reported 2Q15 rev slightly below estimates however EBITDA was meaningfully below primarily as a result of the continued ramp in of new/vacant data center costs acquired last year. All in, 2Q15 certainly did not provide the consistency that we had expected however the capital return is very attractive as is the outer year FCF story although this will take time/patience to prove out."

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Shares of Cogent Communications closed at $29.14 yesterday.