Morgan Stanley resumes Gogo stock coverage with Equalweight rating

Published 14/08/2025, 09:38
Morgan Stanley resumes Gogo stock coverage with Equalweight rating

Investing.com - Morgan Stanley has resumed coverage of Gogo (NASDAQ:GOGO) with an Equalweight rating and a $15.00 price target, as the in-flight connectivity provider navigates multiple transitions. Currently trading at $12.62, the stock sits within the broader analyst target range of $14.00 to $17.50, according to InvestingPro data.

The company is currently integrating its December 2024 Satcom Direct acquisition while simultaneously launching new products including its 5G service and Galileo connectivity solution. Morgan Stanley notes that Gogo has successfully secured Federal Aviation Administration Parts Manufacturer Approval for its Galileo antennas in the first half of 2025. InvestingPro data shows the company’s strong liquidity position with a current ratio of 1.71, supporting its expansion initiatives.

Post-acquisition integration is exceeding initial expectations, with Gogo now anticipating approximately $30-35 million in run-rate savings, about $5 million higher than previously projected. The firm also reports that GEO aircraft online from the legacy Satcom Direct business has performed better than expected.

Despite these positive developments, Morgan Stanley highlights that 2025 remains characterized by limited new product revenue and elevated investment as Gogo positions for future growth. The firm also points to increased competitive pressure from newer, well-funded entrants to the business aviation connectivity market.

Morgan Stanley views the risk-reward profile as balanced at current levels, while noting that Gogo’s stock continues to be influenced by investor sentiment toward SpaceX, with approximately 27% of Gogo’s float sold short.

In other recent news, Gogo Inc reported its second-quarter 2025 earnings, which showed mixed results. The company posted an earnings per share (EPS) of $0.09, slightly missing the expected $0.10, marking a -10% surprise. However, Gogo Inc’s revenue exceeded expectations, coming in at $226 million compared to the anticipated $218.75 million. This revenue beat stands out as a positive aspect of the financial report. Despite the mixed earnings results, the stock experienced a notable decline in pre-market trading. There were no reports of mergers or acquisitions involving Gogo Inc during this period. Analysts have not provided any recent upgrades or downgrades for the company. These developments offer a snapshot of Gogo Inc’s current financial performance.

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