Credit Suisse downgrades Cogent to "neutral" on soft corporate growth

Cogent Communications Holdings

11/10/2022 10:41

** Credit Suisse downgrades internet provider Cogent
Communications Holdings Inc  CCOI.O  to "neutral" from
"outperform" and cuts price target to $56 from $74
    ** Sees subdued growth in the corporate segment over the
medium to long term
    ** Broker adds CCOI's customer base which primarily consists
of mutli-tenant office buildings have been affected by the work
from home (WFH) dynamics driven by the COVID-19 pandemic
    ** "We now believe that office spaces will be slow to fill
vacancies as WFH and hybrid approaches have won the minds of
many employees and some executives" - CS
    ** Eight of 14 brokerages rate the stock "buy" or higher,
three "hold" and three "sell"; their median PT is $64
    ** Shares down 1.9% premarket at $50.55; up to last close,
stock down  around 30%
 (Reporting by Roshan Abraham in Bengaluru)
 ((Roshan.Abraham@thomsonreuters.com))