In a report released today, Greg Gibas from Northland Securities initiated coverage with a Hold rating on Gogo Inc (GOGO) and a price target of $5. The company’s shares closed on Friday at $4.14.
Gibas said:
“We are assuming coverage of GOGO with a MP rating & $5 PT. We believe that following the recent debt refinancing, the completion of AAL de-installs, improving FCF profile and deicing issues behind them, the stock no longer warrants an UP rating. While we expect Gogo to benefit from increased IFC usage as well as the shift towards airlines offering free Wi-Fi, we remain cautious in the near-term as we await additional FCF & fundamental improvement given the company’s highly levered balance sheet. Gogo has certainly had its troubles in the past, we believe it is time to upgrade our investment rating to Market Perform based on the following recent positive developments: Debt Refinancing – Gogo’s extended debt maturity now provides the company with improved financial flexibility through 2022.”
According to TipRanks.com, Gibas is ranked #4438 out of 5256 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Gogo Inc with a $10 average price target.
See today’s analyst top recommended stocks >>
Based on Gogo Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $16.8 million. In comparison, last year the company had a GAAP net loss of $37.21 million.
Based on the recent corporate insider activity of 27 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 GOGO in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Gogo, Inc. engages in the provision of in-flight broadband connectivity and wireless entertainment services. It operates through the following segments: Commercial Aviation North American (CA-NA); Commercial Aviation Rest of World (CA-ROW); and Business Aviation (BA).
