Gogo Inc | GOGO | Long at $4.65

While GOGO Inc may have competition from Starlink when it comes to providing internet service to airlines and its passengers, such a change isn't financially beneficial to many airlines. Instead, as GoGo has stated, it's evolving its services to match those of Starlink (i.e. upgrades). As more and more people fly and internet demand grows, GOGO will likely continue to position itself as a monopoly within the ISP world for airlines in the near-term.

Pros

• Dominates the North American business aviation connectivity market, especially for smaller jets
• Projected Growth: EPS +278.9% between 2025 and 2028
• Insider Buying: $2.3 million in purchases in the last 2 months

Cons

• Starlink competition
• High debt (but plans to use free cash flow to reduce it substantially beyond 2026)

Action
While price may further dip into the $3 range in the near-term, I believe interest rates dropping, projected growth, and insider buying are potential bullish signals. The cost for airlines to switch to other providers is beneficial to maintaining GOGO market dominance. However, like any play, this is going to come down to management's control of debt and no major economic or world issues disrupting airline travel. Thus, at $4.65, GOGO is in a personal buy zone with near-term risk of a drop into the $3 range.

Targets into 2028

1. $6.00 (+29.0%)
2. $8.00 (+72.0%)