Street Calls of the Week
BROOMFIELD, CO - Gogo Inc. (NASDAQ:GOGO), the $1.14 billion market cap in-flight connectivity provider currently trading at $8.52, has reached the final phases of terrestrial testing for its next-generation 5G air-to-ground (ATG) technology, according to a press release issued Thursday. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with analysts setting price targets between $14 and $17.50.
The testing has demonstrated peak speeds of up to 80 Mbps, with the company reporting that its 5G chip is meeting and exceeding anticipated performance metrics. Testing has progressed beyond virtual modeling to using actual equipment including the AVANCE LX5 platform and MB13 antennas.
"We’re resetting expectations around former ATG performance," said Chris Moore, CEO of Gogo, in the statement.
The company expects to begin flight testing in early Q4 and reports that more than 300 private aircraft are already pre-provisioned to connect with the Gogo 5G network when it launches.
To support implementation, Gogo has secured 33 Supplemental Type Certificates (STCs) covering major aircraft types operating in the continental United States, with 28 already completed. The company also has line fit commitments with five original equipment manufacturers.
The enterprise-grade system is designed specifically for business aviation users and does not share its network with other sectors, which the company states will ensure uninterrupted connectivity even in congested areas.
Gogo is also pursuing opportunities in the military and government sectors, noting that its system can support the military’s Primary, Alternate, Contingency, Emergency (PACE) communications planning method.
Installation of the 5G ATG solution will be available through Gogo’s maintenance, repair, and operations network and will take approximately two weeks for new installations, with shorter timeframes for aircraft already equipped with AVANCE LX5 line replaceable units. According to InvestingPro, which offers comprehensive analysis of over 1,400 US stocks, both net income and sales growth are expected this year, suggesting strong execution of the company’s expansion strategy. Discover more insights and detailed financial metrics with an InvestingPro subscription.
In other recent news, Gogo Inc. reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.09, which was slightly below the expected $0.10. However, the company’s revenue exceeded forecasts, reaching $226 million compared to the anticipated $218.75 million. Morgan Stanley has resumed coverage of Gogo with an Equalweight rating and a $15.00 price target, noting the company’s ongoing transitions, including its integration of the Satcom Direct acquisition and the launch of new products. Gogo’s Galileo HDX terminal received Federal Aviation Administration (FAA) supplemental type certification for the Dassault Falcon 2000 aircraft family. Additionally, the European Union Aviation Safety Agency (EASA) granted approval for a Supplemental Type Certificate for Gogo’s Galileo HDX Antenna on Bombardier Global jets. These certifications were achieved through collaborations with Dassault Falcon Jet and Germany’s ACC Columbia Jet Service, respectively. These developments highlight Gogo’s progress in expanding its product offerings and securing necessary regulatory approvals.
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