Cogent Communications

At the Goldman Sachs conference, Cogent said its core business is growing, adjusted EBITDA margins have recovered to around 20%, and the Wavelength business grew from zero to USD 60m within 18 months. The company is selling data centers (10 facilities for USD 225m), using the proceeds to pay down debt and targeting a net leverage ratio of 4.0x (currently 6.23x). Management sees especially strong demand for Wavelength services for AI training as a long-term growth driver and expects annual margin improvements of at least 200 basis points. Shareholder returns will only be resumed after the leverage target has been reached. » Altro su de.investing.com

Cogent Communications shares fell about 6.2% in premarket trading after JPMorgan downgraded the stock from Neutral to Underweight; the price target was cut from $22 to $9 and the target horizon moved to December 2027. JPMorgan cited a disappointing quarter, slower-than-expected Wave installations and revenue losses from expiring Sprint fixed‑line contracts. The bank pointed to high leverage (net leverage 6.75x), negative free cash flow and no clear path to the targeted leverage level, and said the data‑center monetization catalyst is largely exhausted. In Q2 Cogent reported revenue down 4.3% to $235.6m and adjusted EBITDA of $71.1m, both below expectations, after which the stock has fallen roughly 68% year‑to‑date. » Altro su de.investing.com

The stock fell in pre-market trading after JPMorgan downgraded it from "Neutral" to "Underweight" and cut the price target from $22 to $9, with a target date of December 2027. JPMorgan cites a disappointing quarter, weaker revenue and EBITDA, slower customer uptake in the Wave business, and a high net leverage of around 6.75x. An ongoing securities class action is also weighing on investor sentiment, so the bank judges the stock's risk‑reward profile to have deteriorated significantly. » Altro su de.investing.com