Gogo’s 5G Milestone and Strategic Ownership Drive Buy Rating

William Blair analyst Louie DiPalma has maintained their bullish stance on GOGO stock, giving a Buy rating on June 13.

Louie DiPalma has given his Buy rating due to a combination of factors including the recent progress in Gogo’s 5G network development. The company announced a significant milestone with the successful completion of its first 5G call, indicating that the 5G chip is ready for integration into airborne and cellsite systems. This development is crucial as it mitigates the risk of the 5G project being scrapped due to previous delays, and it positions the network to be operational by the end of the year.
Moreover, Gogo’s 5G network is strategically important because it is fully owned by the company, offering higher margins compared to third-party satellite networks. The anticipated cost reductions and synergies, coupled with projected revenue and EBITDA growth, further support the Buy rating. The potential for significant cost savings and enhanced profitability through the successful launch of 5G and other strategic initiatives strengthens the investment case for Gogo.

In another report released on June 13, Roth MKM also maintained a Buy rating on the stock with a $16.50 price target.