In a report released today, Timothy Horan from Oppenheimer maintained a Buy rating on Cogent Comms (NASDAQ: CCOI), with a price target of $57. The company’s shares opened today at $51.40.
Horan said:
“Cogent’s traffic growth accelerated in 2Q18 due to OTT video/gaming and cloud, to 44% Y/Y growth (35% in 1Q18), in line with our expectations. Total revenue of $129.3M rose 7.9% Y/Y but missed our estimates by 110 bps on lower off-net revenue, as CCOI passed through lower prices to consumers. It is seeing strong activity from hyperscale, which should continue near-term. This did pressure ARPU, down 2.5% sequentially to $482, and off-net ARPU fell 2.6% to $1,162. However, we see stronger margins and growth the next few quarters. Strong FCF generation should enable CCOI to ramp up its quarterly dividend increases to $0.03 next year from its typical $0.02. Stock looks attractive at 14x 2019E EBITDA and a 5% 2019 est. div.”
According to TipRanks.com, Horan is a top 25 analyst with an average return of 16.8% and a 75.5% 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 $49.67.
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The company has a one-year high of $57.65 and a one-year low of $35.75. Currently, Cogent Comms has an average volume of 257.6K.
Based on the recent corporate insider activity of 75 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.
