Analyst Gregory Williams of TD Cowen maintained a Buy rating on Cogent Comms, reducing the price target to $55.00.
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Gregory Williams has given his Buy rating due to a combination of factors that suggest a positive outlook for Cogent Communications. Despite the company’s recent underperformance in the third quarter of 2025 and a significant dividend cut, Williams sees these as steps towards de-risking the stock. The dividend cut, although larger than anticipated, is expected to provide the company with greater financial flexibility and help in reducing leverage, setting the stage for future capital returns.
Furthermore, the company has shown promising developments with the sale of two data centers, which could lead to further sales at higher values. The Waves business, although currently lagging, is gaining traction and is expected to contribute significantly to revenue over time. These factors, combined with the recent stock pullback, present an opportunity for investors, as Williams believes the stock is now positioned for growth and recovery, supporting his Buy recommendation.