JPM upgraded the stock to $28 (link below).
2CentView FV=$23 if you value the stock 2 years forward – $GOGO is not expected to make money till 2016-2018 when earnings are expected to grow in the 30% area – with stock trading on an 5Y implied growth in the low 20’s it is a good buy if you believe in the growth potential of on Air High Speed internet access on airplanes.
Revenues are expected to surpass $1bn in 2018.
There are about 50,000 commercial flights taking off worldwide every day, with around 3million passengers if Airlines are charged $5 per passenger x 365 = $5.5bn revenue potential in this market.
I read that $GOGO technology – which is on the ground technology – as opposed to in the air like $VSAT – is not that great, but recently I saw the CEO CNBC come on and say their technology is as good as $VSAT and is improving all the time. However, i dont think you can stream video on an airplane which has $GOGO technology – yet.
However, they are first to market and have signed up major airlines.
If you like $GOGO – buy here at $18, take some profit at $26, stop $14.