Oppenheimer analyst Timothy Horan maintained a Buy rating on Cogent Comms (NASDAQ: CCOI) today and set a price target of $60. The company’s shares opened today at $54.31, close to its 52-week high of $57.65.
Horan wrote:
“Cogent’s 3Q18 revenue grew 6.1% on a constant currency basis, 100 bps below our est. Off-net was weak, the company is seeing better last mile connectivity costs which it is passing through. Negatively customer growth has also slowed to 6.5% from 10% last year and ARPU per on -net customer has ticked down slightly to a 6.2% decline from -5% in 1H18. Positively, EBITDA grew a very strong 17%, with margins at 36.1%, a 160 bps beat and a record 340 bps yoy increase. Sales rep productivity is stable at 5.8 sales per month with sales headcount up 3% sequentially. There appears to be a disconnect between price declines and volume that is negatively impacting top line growth.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 17.1% and a 74.0% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
Currently, the analyst consensus on Cogent Comms is a Hold with an average price target of $44.33.
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Based on Cogent Comms’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $6.55 million. In comparison, last year the company had a net profit of $3.65 million.
Based on the recent corporate insider activity of 70 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.
