CCOI’s FY10 Revenues To Be Substantially Ahead Of Consensus
Analyst Michael Rollins of Citigroup maintains his "buy" rating on Cogent Communications Group Inc (NASDAQ: CCOI). The target price for CCOI has been raised from $13 to $16.
According to Citigroup, Cogent Communications’ FY10 revenues and OIBDA are expected to be significantly ahead of the consensus due to improving sales productivity, favorable demand from net-centric customers and strong operating leverage. CCOI is witnessing a marginal improvement in its sales cycle and a significant recovery is expected during FY10, the analyst adds.
Cogent Communications has substantial volume growth potential in an economic recovery environment, driven by a favorable backdrop for data center collocation & emerging Internet-based video applications, the analyst mentions.
