UPDATE: DA Davidson Upgrades Cogent Communications Group to Neutral as Valuation Resets

DA Davidson increased its rating on Cogent Communications Group CCOI from Underperform to Neutral with a reiterated $18 price target. DA Davidson commented, "CCOI reported revenues of $77.8 million for Q2, up 3.0% year-over-year (YoY) and 1.2% sequentially, but $1-$2 million below consensus. … With the disappointing Q2 behind us, we think Street estimates have been reset lower and we are upgrading the stock back to NEUTRAL. Our price target remains at $18 which equates to ~8x our 2013 EV/EBITDA estimate." Cogent Communications Group closed at $18.14 on Thursday.