Best Smidcap Ideas: Oversold as CCOI to "Catch Waves"; More DC Sales to Come

研报英文原文证据摘录

Best Smidcap Ideas: Oversold as CCOI to "Catch Waves"; More DC Sales to Come

TD Cowen Cogent Communications Group

Global Research June 22, 2026

Summary Of Our Thesis: An Oversold Stock With Two AI Catalysts To Change The Relevant Reports LINK

Narrative

1Q26 Cogent Earnings Review Report Cogent shares are down 31% YTD for three primary but solvable reasons, in our view:

1) lack of traction on its new Wavelengths (Waves) business, 2) lack of data center

TD Cowen TMT Conference

Takeaways Report sales, and 3) elevated capex. As mentioned, all three issues are solvable yet

occurring ahead of a $750MM debt refi, driving an outsized pullback with shares

Takeaways From ConnectX Report trading at just 8.3x 2027 EBITDA despite a 6-8% LT growth story.

Takeaways From MetroConnect Report On Waves, Cogent effectively built a new business from scratch, acquiring the Sprint

network and making the footprint capable of provisioning wavelength services at Cogent Data Center Sale Process Report

scale. That work is now complete, with the platform reaching more than 1,000

Takeaways From Comm. Infra. carrier-neutral data centers across North America and supporting 10G, 100G, and

Summit: Company Presentations Report 400G services. While the initial scaling of the Waves business has fallen short of plan,

the network is now in place and positioned for growth as customer acceptances

catch up and Cogent continues to build credibility with large buyers. Many bearish

investors believe the Wave product is not selling because either the fiber is "too old",

not enough strands (144 or below), or the RFP sales process does not fit the Cogent

model. Our checks indicate Cogent this not to be the case and Cogent will become a

formidable player.