In a report released today, Greg Gibas from Northland Securities maintained a Hold rating on Gogo Inc (GOGO), with a price target of $5. The company’s shares closed yesterday at $4.57.
Gibas noted:
“We continue to appreciate the operational and financial improvements the company is making, but remain cautious as we await a return to consistent top-line growth & B/S delevering. Key Points Gogo reported Q2 revenue of $213.7M (down ~6% YoY), ahead of our $199.3M estimate and the Street’s $199.6M. Service revenues increased ~9% YoY, which were supported by service revenue growth across all three segments (CA-NA +1%, CA-ROW +49%, and BA +14%). Solid service revenue growth in the quarter was offset by a ~42% YoY decline in equipment revenues, resulting from lower 2Ku installations and a mix shift from the airline-directed model to the turnkey model (where equipment revenue isn’t recognized separately). Adjusted EBITDA of $37.8M was up ~100% YoY and was well above our $17.6M estimate and the Street’s $18.1M.”
According to TipRanks.com, Gibas is ranked #4331 out of 5247 analysts.
Currently, the analyst consensus on Gogo Inc is a Moderate Buy with an average price target of $5.
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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 28 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.
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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).
