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Investing.com - TD Cowen reduced its price target on Cogent Communications (NASDAQ:CCOI) to $62.00 from $77.00 on Friday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $32.49, have declined over 21% in the past week, with InvestingPro data showing the stock is now in oversold territory.
The downward revision follows Cogent’s second-quarter 2025 results, which showed lower-than-expected EBITDA and disappointing Wave service installations. TD Cowen noted there were no significant updates regarding the company’s ongoing data center sale process. Despite current challenges, the company maintains an impressive track record of raising dividends for 13 consecutive years, currently offering an 11.43% yield.
Despite the price target reduction, TD Cowen highlighted management’s constructive commentary on three key issues: an increased long-term EBITDA expansion guidance, stronger confidence in the Wave service segment, and maintaining the $10 million per megawatt valuation target for data center assets.
The research firm characterized these three areas as "show me" stories that will require several quarters to demonstrate meaningful progress and validate management’s optimistic outlook.
Cogent Communications provides internet access and data transport services to businesses and carriers worldwide, with its performance being closely monitored as the company navigates the integration of assets acquired from Sprint.
In other recent news, Cogent Communications reported its financial results for the second quarter of 2025, revealing a notable earnings per share (EPS) of -$1.21. This figure fell short of analysts’ expectations, which had predicted an EPS of -$0.99. Additionally, the company’s revenue was slightly below projections, coming in at $246.2 million against the anticipated $247.45 million. These financial results have garnered attention from investors and analysts alike. While the earnings and revenue figures are crucial, no recent analyst upgrades or downgrades were reported. The market’s reaction to these results was immediate, though specific stock price movements are not detailed here. These developments underscore the importance of earnings and revenue performance in shaping investor sentiment.
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