Buy Gogo because of its faster in-flight internet access technology, analyst says

Share
Key Points
  • Raymond James recommends Gogo shares because its faster in-flight internet access services will drive sales growth.
  • The firm initiated its Gogo price target at $15, representing 19 percent upside from Tuesday's close.
People use their smart devices on an American Airlines airplane, which is equipped with Gogo Inflight Internet service, enroute from Miami to New York.
Carlo Allegri | Reuters

Investors should buy Gogo because its faster in-flight internet access services will drive sales growth, according to Raymond James, which initiated the company with an outperform rating.

"Since inception, Gogo has been a leader in providing connectivity to the plane," analyst Ric Prentiss wrote in a note to clients Tuesday. His bullish "thesis is underpinned by Gogo's rollout of its proprietary 2Ku satellite solution and the upgrade of its ATG [air-to-ground] network by 2018, which should further solidify Gogo's position as a leader in the IFEC [in-flight entertainment and connectivity] segment."

More In Pro News and Analysis

CNBC ProTom Lee says buy stocks tied to economic rebound as market worries over bond yields
CNBC ProBlackRock’s Rick Rieder is not worried about rising yields. Here's how he's changing his approach
CNBC ProMike Santoli’s market notes: Bond market tests stocks, GameStop rekindles, a tired S&P 500