Gogo Shares Up On Outlook At Investment Conference

Gogo Inc. GOGO shares were up nearly 4% Tuesday from a trough a day earlier, as the company presented a strong outlook at an investment conference. Gogo, an in-flight Internet provider, has about three-fifths of the domestic market and is currently in a "land-grab" mode for international flights, according to UBS analyst John C. Hodulik. UBS maintains a Buy rating and target price of $23. Earlier this week Gogo said it had agreed with two airlines to test a new satellite system that provides increased speed to 70 megabytes per second, from a current speed of 10 per second provided by Gogo's ground-based system. The satellite system is necessary on international flights. Morgan Stanley analyst Simon Flannery maintains an Underweight rating on Gogo and noted that management expects to have agreements for 500 to 1,000 international aircraft by the end of 2015. Revenue per aircraft $110,000 to $840,000 long term, the company estimates. JP Morgan's Phillip Cusick said he's "encouraged" by Gogo's confidence it its ability to land more international flight deals and sees room for pricing increases. Charges are currently about $5 per hour. Near the close Thursday, Gogo eased back to 18.97 a share from an intraday high of $19.28. On Wednesday it traded as low as $18.38.