Key Takeaways:
- Cogent Communications reported strong Q1 2025 financial results with notable revenue and margin growth.
- Analysts predict a significant upside for CCOI stock, with a one-year target price that suggests a large increase from current levels.
- GuruFocus estimates imply a nearly 95% potential upside based on its GF Value calculation.
Cogent Communications' Impressive Q1 2025 Performance
Cogent Communications (NASDAQ: CCOI) delivered a standout performance in the first quarter of 2025, reporting $247 million in revenue and a $68.8 million adjusted EBITDA. The company's EBITDA margin saw an increase to 27.8%. This growth was driven in part by the expansion of its wavelength services, which led to a 2.2% increase in revenue to $7.1 million. Additionally, the firm's IPv4 leasing income surged by 14.8% to reach $14.4 million. With an ambitious goal, Cogent aims to secure a 25% share of the North American market over the next three years.
Wall Street Analysts' Projections
Ten Wall Street analysts have set a range of one-year price targets for Cogent Communications Holdings Inc (CCOI, Financial), with an average target price of $83.10. This includes a high estimate of $102.00 and a low estimate of $55.00. The consensus target implies a significant upside potential of 68.56% from the current trading price of $49.30. For more detailed analyst estimates, visit our Cogent Communications Holdings Inc (CCOI) Forecast page.
The average brokerage recommendation, based on the analysis of 12 brokerage firms, currently rates Cogent Communications Holdings Inc (CCOI, Financial) at 2.4, indicating it is expected to "Outperform." The rating scale ranges from 1, representing a Strong Buy, to 5, suggesting a Sell.
GuruFocus's GF Value Estimation
According to GuruFocus's proprietary metrics, the estimated GF Value for Cogent Communications Holdings Inc (CCOI, Financial) within the next year stands at $96.12. This suggests a potential upside of 94.97% from the current market price of $49.30. The GF Value represents GuruFocus's assessment of the stock's fair trading value, derived from historical trading multiples, past business growth, and projected future performance. For a comprehensive overview, visit our Cogent Communications Holdings Inc (CCOI) Summary page.
