Oppenheimer Sticks to Their Buy Rating for Cogent Comms


Oppenheimer analyst Timothy Horan maintained a Buy rating on Cogent Comms (NASDAQ: CCOI) today and set a price target of $57. The company’s shares closed on Friday at $51.75, close to its 52-week high of $54.85.

Horan wrote:

“We are raising our PT to $57 from $51, or 15x 2019E EBITDA, which is its historical peak multiple. CCOI benefits from better overall IP transit volumes from improved OTT and share gains. CCOI is the low-cost provider of Internet access and private network services, which drives the share gains, helped by FANG’s termination agreements with incumbents expiring. Net neutrality concerns are also subsiding. We think CCOI will see volume growth above 40% this year and 50% next year. This could drive revenue growth above 10% and EBITDA margin expansion above 150 bps per year. The stock is trading at a 4% dividend yield, which is attractive vs. cloud infrastructure peers.”

According to TipRanks.com, Horan is a top 100 analyst with an average return of 15.9% and a 73.5% 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 Moderate Buy, with a price target consensus of $48.50.

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The company has a one-year high of $54.85 and a one-year low of $35.75. Currently, Cogent Comms has an average volume of 267.9K.

Based on the recent corporate insider activity of 74 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.

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