Bullish option flow was detected in GOGO stock on September 28, 2021. The bullish option flow appears to be coming from the company raising its annual revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growth estimates.
GOGO Stock Bullish Option Flow
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Gogo raises FY25 compound annual revenue growth target to 15% from at least 10%
On September 28, 2021, the company said that it sees FY25 adjusted EBITDA margin of 45%. The company forecasts FY25 free cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... of $200M.
“Growth in private air travel continues to expand, fueling what we expect will be sustained growth in demand for inflight connectivity as customers seek to replicate their home and office connectivity in the air,” said Oakleigh Thorne, chairman and CEO of Gogo. “That has driven record equipment sales at Gogo and is expected to generate growth in high-margin service revenue through our 2025 planning horizon.”
Revised Long-Term Financial Targets
- Revenue growth at a compounded annual growth rate of approximately 15% from 2020 to 2025 (versus prior target of at least 10%)
- Annual Adjusted EBITDA margin rising from 40% in 2021 to 45% in 2025 (versus prior target of 35% – 40%)
- Free Cash Flow of approximately $125 million in 2023, following the deployment of the Gogo 5G network in 2022, and approximately $200 million in 2025 (versus prior target of more than $100 million in 2023 with significant Free Cash Flow growth thereafter)
Gogo recent weakness a buying opportunity, says Roth Capital
On August 5, 2021, Roth Capital analyst Scott Searle raised the firm’s price target on Gogo to $16.50 from $16 and keeps a Buy rating on the shares saying the company “posted a beat and raise across the board.” The analyst recommends using the “recently misplaced weakness as an entry point” into the shares. He sees sustainable 10%-15% long-term growth for Gogo.
VIDEO GOGO Stock Analysis, +40% What’s Next?!
Trading Extrinsic Value gave his opinion today on GOGO stock:
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GOGO Stock Technical Analysis
GOGO stock’s large players volume exploded higher on September 28, 2021, which is bullish. Overall, the stock does NOT look like a good setup at the moment. The price is a bit too volatile for an entry.