In a report released today, Greg Gibas from Northland Securities maintained a Buy rating on Global Eagle (ENT), with a price target of $1.50. The company’s shares closed yesterday at $0.63, close to its 52-week low of $0.42.
Gibas observed:
“We expect $13-16M of adjusted EBITDA improvement from labor savings in 2019 which will reach ~$20M in run-rate savings that began partway through Q1 and will finally be fully recognized in Q3 results. As mentioned on the last call, these labor cuts included the elimination of 23 VP, SVP and EVP roles by the end of Q2. Additionally, we expect a number of other cost savings from the reduction of travel & entertainment expenses by ~$5M, facility costs by ~$2M, professional services by ~$2M and ~$3M of savings from the repricing of bandwidth to support positive FCF generation by year-end.”
According to TipRanks.com, Gibas is ranked #4367 out of 5229 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Global Eagle with a $1.50 average price target.
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Based on Global Eagle’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $37.61 million. In comparison, last year the company had a GAAP net loss of $45.91 million.
Based on the recent corporate insider activity of 14 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 ENT in relation to earlier this year.
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Global Eagle Entertainment, Inc. engages in the provision of content, connectivity and digital media solutions for airlines. It operates through the Media and Content, and Connectivity business segments. The Media and Content segment consists of licensing fees paid to acquire content rights for the airline industry.
