UPDATE: BTIG Research Initiates Coverage on Cogent Communications Group with Buy Rating, $40 PT on Positive Outlook

In a report published Wednesday, BTIG Research analyst Walter Piecyk initiated coverage on

with a Buy rating and $40.00 price target. In the report, BTIG Research noted, “Cogent is a fiber-based internet infrastructure provider that we believe can generate more than 10% revenue growth and 15%-25% EBITDA growth. Half of Cogent's business is recurring revenue from providing internet connectivity to corporate customers, while the other half benefits from the 20% of global internet traffic that is carried over their network. We are cautious about Cogent's ability to increase the number of new customers added from its recent investment in additional sales personnel, but believe CEO Dave Schaeffer deserves the benefit of the doubt for now.” Cogent Communications Group closed on Tuesday at $32.82.