In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on Cogent Comms (NASDAQ: CCOI), with a price target of $51. The company’s shares closed yesterday at $48.65.
Horan observed:
“Cogent’s 1Q17 revenue grew 2% sequentially on a constant currency basis, the best in over five quarters, and grew 10% on a YOY reported basis, driven by improved Internet volume growth. EBITDA rose 17%, the best in several years, and 5% above our estimate at a strong 34.2% margin, up from 33.2% for 2017. Positively, Internet volume growth did improve to 35% sequentially, up from 25% in 1Q17. Total Customers Added were strong as were buildings, up 16% and 6%, respectively. Sales rep productivity was down to 5.7 from 6.1 last year with sales headcount down 5% sequentially. CAPX was high, up 22% YOY, and we look for color on the call on this and on sales trends.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 15.6% and a 74.4% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
Cogent Comms has an analyst consensus of Hold, with a price target consensus of $44.75.
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Based on Cogent Comms’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $125 million and GAAP net loss of $6.23 million. In comparison, last year the company earned revenue of $117 million and had a net profit of $4.14 million.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock.
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Cogent Communications Holdings, Inc. engages in the provision of internet access and Internet Protocol communications services. It offers internet access and data transport through its fiber optic, IP data-only network, ethernet transport, and colocation services.
