Analyst Gregory Williams from TD Cowen maintained a Buy rating on Cogent Comms (CCOI – Research Report) and decreased the price target to $93.00 from $97.00.
Gregory Williams has given his Buy rating due to a combination of factors including Cogent Comms’s strategic adjustments and future growth potential. Despite the recent modest downside in revenue and EBITDA results, the company has increased its long-term revenue growth targets and margin expansion goals. This indicates a positive outlook for the company’s financial performance in the coming years.
Moreover, while the reduction in quarterly dividend growth was unexpected, it is seen as a temporary measure due to the ongoing data center sales process. Management remains confident in achieving a significant EBITDA target by 2025, and the anticipated data center monetization is expected to restore accelerated capital returns. These factors, along with the potential for asset monetizations and improved financial metrics, present a buying opportunity for investors, according to Williams.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CCOI in relation to earlier this year.