Cogent initiated with a Buy at UBS

UBS analyst Christopher Schoell initiated coverage of Cogent (CCOI) with a Buy rating and $102 price target. The company is on the cusp of realizing the benefits of its prior Sprint (S) wireline acquisition from T-Mobile (TMUS) (TMUS ) that was closed mid-2023, including the transformation of a cash burning asset into a growing and profitable wavelength business with a $2B total addressable market, the analyst tells investors in a research note. While scaling has been slower in 2024, UBS expects performance to inflect in FY25 and beyond as network reconfiguration comes to a close, the firm adds.