Gogo takes off on stock buyback plan

Gogo

06/09/2023 13:45

** Shares of Gogo Inc  GOGO.O  up 6.9% at $11.90 premarket
as in-flight internet provider plans to buy back stock
    ** Co late Tues announced $50 mln share repurchase, adding
it does not expect to incur debt to fund the program
    ** Gogo has $1.4 bln market cap, based on ~128.7 mln shares
outstanding
    ** TD Cowen reiterates "outperform" and $22 PT, saying
buyback bolsters its constructive view and suggests management's
"considerable confidence" that 2024 will mark "a significant
positive inflection in free cash flow"
    ** GOGO shares tumbled 18% on Aug 7 after co lowered its
annual rev forecast, driven by heightened service suspensions
and 5G network launch delay
    ** Avg rating among 7 analysts covering GOGO is "buy" and
median PT is $18, LSEG data shows
    ** Shares down ~25% YTD through close on Tues

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))