Cogent’s Q2 Results Show the Firm Hasn’t Yet Turned a Corner Following the Pandemic Disruption

Cogent’s netcentric business, which thrived during the pandemic, has continued to slow the past several quarters, but its corporate business, which was hurt by the pandemic, has not yet turned a corner. The result in the second quarter was a disappointing top line. Cogent is nonetheless continuing to expand margins, and we expect the corporate business to return to material growth, even though a turn up in connections is taking longer than we thought. We're not making any changes to our forecast, and we’re maintaining our $65 fair value estimate.