1850

Cogent Communications Group Inc., a broadband technology supplier, said recently it will buy back up to $50 million in shares.

The program is in addition to a $50 million program authorized by the board in August 2007.

Cogent Communications (CCOI) upgraded to Outperform rating from Sector Perform at RBC. However, their price target dips to $22 from $24 and raises their risk rating to Speculative from Above Average.

Buy - Price 17.89 on May 12
by Jefferies & Co.

CCOI posted a disappointing Q1, punctuated by slower-than-expected growth of on-net revenues and Internet traffic. Still, strong operating leverage yielded in-line Ebitda, and we believe the emerging [free-cash-flow] story remains intact. Management maintained guidance, which now implies a big first-half '08 ramp. Target reduced to 25. Market cap: $870 million.

good position to clean up after worldcom cratered

good past performance

Downgraded by RBC Capital Mkts from Outperform to Sector Perform

Technology, Internet Service Providers

Management is selling wall street something it can't deliver. CEO very effective at selling snake oil, but can't last forever.