Gogo valuation understates near-term launch of Galileo, says Roth MKM

Roth MKM analyst Scott Searle keeps a Buy rating and $15.50 price target on Gogo (GOGO), stating that the stock has been “weak” recently due partially to “misperceptions” about Starlink’s win at United (UAL). The firm notes however that as a reminder, Gogo had sold its Commercial Aviation business to Intelsat in 2020 and receives a small royalty that is expected to sunset in 2026, and consequently, Roth MKM sees no impact on Gogo from the Starlink-United relationship. The firm further states that these wins are for larger commercial aircraft targeted at international and regional routes, and Gogo does not address this segment of the marketplace. Roth MKM also notes that Galileo – or global Broadband – remains on track for HDX and FDX deployments in Q4 of this year and in the first half of 2025 respectively, but the stock is currently valued with assumption of “no growth”.