Home / Business and Economy / Cogent Communications Surges 31% on Favorable Outlook from Wells Fargo
Cogent Communications Surges 31% on Favorable Outlook from Wells Fargo
18 Aug
Summary
- Wells Fargo upgrades Cogent Communications to "Overweight" from "Underweight"
- Sets $45 price target, suggesting 31% upside from previous close
- Believes Cogent has moved past significant negative impacts from Sprint acquisition
On August 18, 2025, shares of internet service provider Cogent Communications (NASDAQ:CCOI) surged 8.1% in the afternoon trading session after receiving a double upgrade from Wells Fargo. The firm's analyst, Eric Luebchow, skipped a neutral rating and moved the stock directly from "Underweight" to "Overweight," setting a price target of $45.00 - a potential upside of around 31% from the previous closing price.
Luebchow's bullish stance is based on the belief that Cogent has moved past the most significant negative impacts from its Sprint acquisition. The analyst stated that "the worst of the Sprint legacy declines is behind it" and now sees a favorable risk/reward profile for the stock. Wells Fargo anticipates that Cogent will return to revenue growth in the fourth quarter of 2025, with that growth expected to continue through 2026.
Cogent's shares closed the day at $36.89, up 7.7% from the previous close. The company's stock has been somewhat volatile, with 13 moves greater than 5% over the last year. However, today's jump indicates that the market considers this news meaningful but not a fundamental game-changer for the business.
