UPDATE: Jefferies Initiates Boingo Wireless with Hold Following Cloud Nine Media Acquisition

In a report published Wednesday, Jefferies analyst Thomas Seitz initiated coverage on Boingo Wireless WIFI with a Hold rating and $6.50 price target. In the report, Seitz noted, “Although not owned and operated, Boingo has negotiated access to the largest global WiFi footprint – put together via ~670k hotspots in over 100 countries – in the world. We believe Boingo has the potential to become a critical player in the wireless market where data usage is growing exponentially. Over time, we also expect Boingo could benefit from the trend towards location-based advertising/promotions as brick ‘n mortar retailers fight back against the consumer phenomenon of ‘show-rooming.‛ We believe the recent acquisition of Cloud Nine Media would allow Boingo to better monetize its network over the long term.” Boingo Wireless closed on Tuesday at $6.17.