Wells Fargo double upgrades Cogent on revenue inflection point

Wells Fargo upgraded Cogent (CCOI) to Overweight from Underweight with an unchanged price target of $45. The company is past the worst of the Sprint legacy declines and the stock’s risk/reward now skews favorable, the analyst tells investors in a research note. Wells also sees “upside optionality” from Cogent’s asset sales. The company’s core revenue growth should inflect positively in the second half of 2025 without meaningful wavelength sales, contends the firm. It believes Cogent has reached an inflection point with the vast majority of the unprofitable Sprint revenues behind it.