Morgan Stanley Reinstates Equal-Weight Rating on Gogo with $15 Price Target

Morgan Stanley Reinstates Equal-Weight Rating on Gogo with $15 Price Target

On July 2, 2025, Morgan Stanley has reinstated coverage of Gogo Inc. (NASDAQ:GOGO) with an Equalweight rating and a $15.00 price target. The stock is currently trading at $12.62, within the broader analyst target range of $14.00 to $17.50 [2].

Gogo Inc. is a broadband connectivity service provider for the business aviation market, offering a suite of smart cabin systems for integrated connectivity, inflight entertainment, and voice solutions. The company's recent insider transaction, where Chief Executive Officer Christopher John Moore purchased 10,000 shares of Gogo valued at $121,100, indicates insider confidence in the stock's potential [1].

The company's financial performance over the past three months has shown significant revenue growth, with a rate of 121.48% as of June 30, 2025 [1]. However, Gogo faces challenges with a low gross margin of 47.33%, a below-average earnings per share (EPS) of $0.1, and a high debt-to-equity ratio of 8.86 [1]. Despite these challenges, the company's market capitalization remains below industry averages, signaling a relatively smaller size compared to peers [1].

Gogo Inc. is currently integrating its December 2024 acquisition of Satcom Direct and launching new products such as its 5G service and Galileo connectivity solution. The company has successfully secured Federal Aviation Administration Parts Manufacturer Approval for its Galileo antennas in the first half of 2025 [2]. Post-acquisition integration is exceeding initial expectations, with Gogo anticipating approximately $30-35 million in run-rate savings [2].

Despite these positive developments, Morgan Stanley notes that 2025 is characterized by limited new product revenue and elevated investment as Gogo positions for future growth. The firm also points to increased competitive pressure from newer, well-funded entrants to the business aviation connectivity market [2].

The risk-reward profile for Gogo's stock is viewed as balanced at current levels, with investor sentiment toward SpaceX influencing the stock, as approximately 27% of Gogo’s float is sold short [2].

References:
[1] https://www.benzinga.com/insights/news/25/08/47063262/gogo-chief-executive-officer-trades-121k-in-company-stock
[2] https://www.investing.com/news/analyst-ratings/morgan-stanley-resumes-gogo-stock-coverage-with-equalweight-rating-93CH-4190970