Cogent cut to Underperform at BofA on elevated valuation, diminished outlook

As previously reported, BofA downgraded Cogent to Underperform from Neutral with a price target of $65, down from $75. Cogent is well past the one year anniversary of the Sprint Wireline acquisition and is behind schedule in monetizing the wavelength opportunity, the analyst tells investors. While waiting for evidence to support the belief that the wavelength business remains a growth opportunity for Cogent, the firm says a positive inflection point for the business seems most likely in the second half of 2025 and contends that the 12-month forward outlook does not support the stock’s current valuation.