Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Here's Why Gogo, Inc. Shares Will Soar 65%

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Gogo, Inc.  (NASDAQ: GOGO  ) popped 4% today after JPMorgan upgraded the in-flight Internet connectivity technologist from neutral to overweight.

So what: Along with the upgrade, analyst Philip Cusick planted a price target of $28 on the stock, representing about 65% worth of upside to yesterday's close. So while momentum traders might be turned off by Gogo's price weakness in recent months, Cusick's call could reflect a strengthening sense on Wall Street that its growth prospects are becoming too cheap to pass up.

Now what: According to JPMorgan, Gogo's risk/reward trade-off is rather attractive at this point. "Gogo is currently the largest communication service provider in Business Aviation -- it has 5,175 satellite units (mostly voice only) and 2,047 [air-to-ground] units online," noted Cusick. "We continue to believe Gogo's ATG suite has significant advantages over satellite connectivity alternatives in BA due to lighter equipment, overnight installation and faster speeds. We expect ATG adds and shipments to remain strong through 2014 while satellite demand only gradually slows over time." When you couple that positive outlook with Gogo's price weakness of late, it's tough to disagree with JPMorgan's upgrade. 

More compelling ways to grow
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 24, 2014, at 7:37 PM, joesan wrote:

    As a very frequent flyer and with a need for in-flight connectivity not withstanding my position in GoGo, I stand firmly behind this company and their business plan. Hopefully this stock will breakout (again) and climb to the levels experienced in the not so distant past!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2919676, ~/Articles/ArticleHandler.aspx, 9/2/2015 5:55:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated Moments ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 3:59 PM
GOGO $16.44 Up +0.83 +5.32%
GOGO INC CAPS Rating: ***