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UPDATE: DA Davidson Downgrades Cogent Communications Group to Underperform

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DA Davidson reduced its rating on Cogent Communications Group (NASDAQ: CCOI) from Neutral to Underperform as it sees the company's valuation high and its outlook into 2013 dimming.

DA Davidson noted, "CCOI's stock price has levitated since its Q2 announcement and it is now the most expensive competitive telecom stock in the CLEC universe at 11.1x 2012 and 9.1x 2013 EV/EBITDA estimates. We think CCOI's valuation has been buoyed by expectations that it may be one of the next consolidation targets in the industry, but we think XO and some of the regional CLECs may find buyers before CCOI. An insider sale of stock in mid-September (not through a 10B5-1 program) showed that no M&A discussions were underway."

Cogent Communications Group closed at $21.19 on Thursday.

Latest Ratings for CCOI

Jan 2017Stifel NicolausInitiates Coverage OnBuy
Dec 2016SunTrust Robinson HumphreyInitiates Coverage OnBuy
Sep 2016JP MorganAssumesNeutral

View More Analyst Ratings for CCOI
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Posted-In: DA DavidsonAnalyst Color Downgrades Intraday Update Analyst Ratings


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