BofA lowered the firm’s price target on Cogent (CCOI) to $30 from $50 and keeps an Underperform rating on the shares after the company reported Q2 revenue and adjusted EBITDA slightly below BofA and Street estimates. A focal point of Q2 results was a lack of wavelength ramp, as the wavelength business installed only 147 connections in Q2, versus Street expectations of 500, the analyst tells investors. Leverage remains high compared to historic levels and the quarterly dividend payout is “unsustainable at current operating and leverage trajectory,” the firm argues.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CCOI:
- Trade Desk downgraded, Instacart upgraded: Wall Street’s top analyst calls
- Cogent price target lowered to $75 from $90 at Oppenheimer
- Cogent price target lowered to $62 from $77 at TD Cowen
- Cogent downgraded to Sector Perform at RBC Capital on lower estimates
- Cogent downgraded to Sector Perform from Outperform at RBC Capital