Cogent Communications (CCOI) has capitalized on strong demand for data centers, fiber, and wavelengths, and completed integration of T-Mobile's Wireline Business, formerly Sprint GMG, despite labor shortages and supply chain constraints, Oppenheimer said in an earnings preview Wednesday.
Investors are closely watching the company's progress in provisioning wavelengths within a two-week to three-week window as demand for alternative routing options remains robust, with customers seeking connectivity from at least three different networks at any given data center, according to the firm.
Oppenheimer said that reaching Cogent Communications' target of 25% market share over the next five years may require discounting closer to 20%, and strong demand may allow the industry to raise prices over time.
IP volumes picked up in Q4 and are expected to continue improving through 2025 due to stronger international pricing, the firm added.
Oppenheimer has an outperform rating on Cogent Communications' stock with a $90 price target.
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