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UPDATE: DA Davidson Downgrades Cogent Communications Group to Underperform

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From Double-Digit Growth To Dividend Hikes, Cogent Communications Has It All
Benzinga's Top Upgrades, Downgrades For March 24, 2017

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

DateFirmActionFromTo
May 2017Cowen & Co.DowngradesOutperformMarket Perform
Mar 2017Deutsche BankInitiates Coverage OnBuy
Mar 2017Goldman SachsInitiates Coverage OnNeutral

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Posted-In: DA DavidsonAnalyst Color Downgrades Intraday Update Analyst Ratings

 

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