Cogent Communications Shares Rise After Upgrade

NEW YORK (AP) — Shares of Internet service provider Cogent Communications Group Inc. advanced Tuesday after a Citi Investment Research analyst said the company is likely to meet or exceed sales expectations for the quarter.

Citi analyst Michael Rollins upgraded the stock to "Buy" from "Hold" in a note to clients Monday.

He said the weakening U.S. dollar and improving sales productivity should help Cogent achieve at least the average revenue projection from analysts. Rollins projects second-quarter sales of $57.8 million, compared with the average of $57.7 million, according to a Thomson Reuters poll.

He said the company's "low-cost strategy and discounting for long-term contracts will continue to weigh" on average revenue per customer, but also help Cogent "take share from the larger telecom incumbents for Internet transit services."

Cogent shares jumped 40 cents, or 5 percent, to $8.42 in afternoon trading.