Gogo: Quite Undervalued Despite Gogo 5G Introduction

Nov. 08, 2024 7:01 AM ETGogo Inc. (GOGO) Stock
(15min)

Summary

  • Gogo Inc. is launching Gogo 5G in Q4 2024, which is expected to drive significant revenue and EPS growth in 2025 and 2026.
  • Recent acquisitions and reduced debt levels may enhance future free cash flow and enable further inorganic growth opportunities.
  • Strong partnerships with OEMs and distributors could facilitate expansion into new markets, boosting overall business growth.
  • Despite potential risks, GOGO appears undervalued, with a share repurchase program likely to support future stock price increases.

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We Are

Gogo Inc. (NASDAQ:GOGO) is launching a number of new products including Gogo 5G, and recently acquired a number of businesses, which may accelerate 2025 EPS growth. Given previous decline in debt levels, in my view, we could see new inorganic growth

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Like the common kingfisher or Alcedo Atthis searches for small fish, I research small, and medium cap companies in Europe, the United States, and South America. You can find a common kingfisher in my profile.With close to 14 years in the financial industry, I worked for an equity research firm in NY, one investment fund in Mexico, and one investment bank in Ireland. Right now, I am a private investor. I usually cover mature industries such as mining, oil and gas, real estate, and others. I do not invest in business models that I do not understand. I appreciate M&A deals, deep value investments, and dividend investing. My investments usually target an internal rate of return of close to 5%-7%. My purpose for writing on Seeking Alpha is simple. Readers can provide fantastic feedback about stocks I own. Note that I do not provide financial advice. Everything I write is my opinion. My articles could include small mistakes about the future. Like other analysts, I offer my expectations about the future EPS, net revenue, FCF, and other financial figures. They could be wrong. If you want me to revise some of my financial figures, please send me a message. The investments that I offer may not be suitable for all SA readers. If you have any doubts, in my view, you should seek advice from another financial advisor.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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