UPDATE: Citigroup Raises PT on Cogent Communications Following Light 2Q Results

In a report published Monday, Citigroup analyst Michael Rollins reiterated a Neutral rating on Cogent Communications CCOI, and raised the price target from $31.00 to $33.00.

In the report, Citigroup noted, “Cogent reported light 2Q headline results with slower revenue growth relative to consensus and our forecasts, despite improving salesforce productivity, while maintaining its target revenue growth at 10-20% yoy for FY13. Management also raised its target financial leverage ratio to 2.5x in order to boost shareholder returns through a combination of increasing quarterly dividends, as well as buybacks and a potential quarterly special dividend.”

Cogent Communications closed on Friday at $32.14.