Cogent price target lowered to $70 from $82 at Citi

Citi lowered the firm’s price target on Cogent Communications to $70 from $82 and keeps a Buy rating on the shares. The analyst updated the company’s model to reflect the Q1 results and a segmentation for Cogent’s expanded product disclosures. Citi still sees opportunity for Cogent to improve performance within its corporate segment, better monetize its inventory of IPV4 addresses, accelerate wave sales, and capture significant merger-related synergies. However, the firm also recognizes the ramp of wave sales and recovery of core corporate segment performance may be taking longer than the company’s prior indications.