Citi Reiterates Buy on Cogent, Sees Big Upside Ahead of Key Trial Readout

Citi reaffirmed its Buy rating and $15 price target on Cogent Communications (NASDAQ:CCOI), highlighting a highly favorable risk/reward profile ahead of pivotal data expected in July from the registrational Part 2 of the Phase 2 SUMMIT trial testing bezuclastinib in non-advanced systemic mastocytosis (NonAdvSM).

According to Citi, the market has effectively priced out a successful readout since Part 1 results, failing to recognize the potential for bezuclastinib to outperform Blueprint’s Ayvakit both in efficacy and safety. The firm’s scenario analysis suggests investors are overestimating the likelihood of severe safety issues and underestimating the chance of meaningful efficacy gains.

Citi’s base case projects at least 50% upside from current levels, expecting bezuclastinib to deliver 75–100% greater efficacy than Ayvakit with an acceptable safety profile. With shares near lows, the analysts see the setup as compellingly asymmetric to the upside and has opened a 30-day Upside Catalyst Watch, anticipating a major revaluation if results meet or exceed expectations.