Oppenheimer analyst Timothy Horan maintained a Buy rating on Boingo Wireless Inc (WIFI) today and set a price target of $39. The company’s shares closed yesterday at $21.49.
Horan noted:
“WIFI reported revenue of $67.8M against estimated $68.2M, due to accounting impacts, representing 18% reported growth and 10% organic. Gross profit margins of 50.4% were 540 bps below our estimate due to the Elauwit acquisition and accounting changes, flowing into a 5% EBITDA miss of $24.4M against our $23.3M estimate. Capex came in at $36.2M vs. our $22.8M, leading into FCF of $2.7M vs. $4.9M expected. Guidance was in line with our estimate when normalized for the renewal of its major DAS contracts with the NY Port Aurthority facilities. However, the headline estimate on ebitda was 20% below expectations and could cause stock weakness today, which we’d see as a buying opportunity.”
According to TipRanks.com, Horan is a top 100 analyst with an average return of 15.3% and a 70.9% success rate. Horan covers the Technology sector, focusing on stocks such as Zayo Group Holdings, Limelight Networks, and CenturyLink Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Boingo Wireless Inc with a $37 average price target.
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The company has a one-year high of $35.98 and a one-year low of $18.50. Currently, Boingo Wireless Inc has an average volume of 409.1K.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WIFI in relation to earlier this year.
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Boingo Wireless, Inc. engages in the istallation of distributed antenna systems or DAS, Wi-Fi, and small cells. It operates through the following geographical segments: North America; Latin America; Europe, Middle Est, and Africa; and Asia. The firm’s wireless networks are in the airport; cafe/retail; convention center; hotel; and other.
