William Blair analyst Louie DiPalma has reiterated their bullish stance on GOGO stock, giving a Buy rating on October 22.
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Louie DiPalma has given his Buy rating due to a combination of factors including Gogo’s strategic initiatives and financial performance. Despite a recent decline in share price, the company has shown significant progress in its strategic plans, particularly with the anticipated launch of its 5G network by the end of 2025. This development is expected to reverse the current elevated churn rates as customers upgrade to the new technology.
Furthermore, Gogo’s financial performance has been strong, with adjusted EBITDA surpassing consensus estimates, driven by the inclusion of the SD acquisition. The company remains optimistic about its future cash flow, projecting $170 million in free cash flow by 2027. These factors contribute to the expectation that Gogo’s shares will trend higher over the next year, supporting the Buy rating.
In another report released on October 22, Roth MKM also reiterated a Buy rating on the stock with a $17.50 price target.