Gregory Williams, an analyst from TD Cowen, maintained the Buy rating on Cogent Comms. The associated price target was lowered to $62.00.
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Gregory Williams has given his Buy rating due to a combination of factors that suggest potential growth for Cogent Comms despite recent setbacks. The company has faced challenges with its EBITDA, Waves installations, and data center sales progress, yet management has provided constructive commentary on these issues. They have increased their long-term EBITDA margin expansion guidance, showing confidence in their ability to improve financial performance.
Furthermore, Cogent Comms expects high-margin Waves to gain traction, which should drive revenue growth in the coming quarters. The company has also overcome the Sprint GMG merger’s drag, reaching an EBITDA break-even point for the Sprint business. These developments, coupled with management’s optimism and strategic adjustments, underpin Williams’s Buy rating, as they indicate a positive outlook for Cogent’s future financial health.
According to TipRanks, Williams is an analyst with an average return of -4.7% and a 40.85% success rate. Williams covers the Communication Services sector, focusing on stocks such as Echostar, T Mobile US, and AT&T.