Gogo (GOGO) PT Lowered to $7 at Morgan Stanley

Morgan Stanley analyst Simon Flannery lowered the price target on Gogo (NASDAQ: GOGO) to $7.00 (from $8.00) while maintaining a Equalweight rating.

The analyst comments "We lower our PT to $7 from $8 prior. We arrive at a PT of $7 by applying a ~7.5x multiple on 2027E EBITDA of ~$208mn. This multiple reflects a 1-turn discount to the median multiple Gogo has traded at since the Satcom Direct merger. Our prior PT leveraged a ~7x multiple on 2027E EBITDA of ~$234mn. We are increasing our valuation multiple by a half-turn as we see early indicators (e.g., equipment revenue growth) helping de-risk Gogo’s product transition."

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