Cogent price target lowered to $23 from $40 at RBC Capital

RBC Capital lowered the firm’s price target on Cogent (CCOI) to $23 from $40 and keeps a Sector Perform rating on the shares. The firm cites the company’s Q3 financial and customer metrics coming behind expectations while also noting that the management has reduced the quarterly dividend to 2c/share and paused buybacks as the leverage ratio of 7.4x remains elevated, the analyst tells investors in a research note. Q3 marked another quarter of slow uptake of wavelengths and an elevated cost structure, the firm added.