Cogent price target lowered to $25 from $30 at BofA

BofA lowered the firm’s price target on Cogent (CCOI) to $25 from $30 and keeps an Underperform rating on the shares following the Q3 earnings report. Cogent announced that it is cutting its quarterly dividend by 98% to 2c per share and is pausing its share repurchase program, with management deciding to focus on delevering before reevaluating its capital allocation outlook, the analyst tells investors in a research note. The dividend cut, stock buyback pause, and data center LOI set Cogent up for a lower cash burn and the potential to lower leverage, but BofA believes that a turnaround in the narrative remains contingent on wavelength business improvement.