| 2021-06-11 12:29:52|
GOGO 12:29 06/11 06/11/21
Gogo continues selloff with SmartSky on track for launch in 2021
Shares are Gogo are continuing a selloff that started yesterday after SmartSky announced the completion of "all technical milestones and the opening of the first fully operational coverage zone of its next-generation inflight communications network." The company said it is on a path to certification and commercial launch later this year." SmartSky, in a press release, added that it has "now proven it can provide office-grade, bi-directional, multi-Mbps inflight connectivity with very low latency for business jet and turboprop flights transiting the network's Southeastern corridor that covers a large contiguous portion of Florida, Georgia, and South Carolina." Gogo shares fell yesterday on news that air-to-ground competitor SmartSky had reached technical milestones placing the company on track for a year end regional launch, Roth Capital analyst Scott Searle told investors earlier in a research note. Gogo's 5G network remains on track for a second half of 2022 nationwide commercial launch and the U.S. business aviation market is only 30% penetrated, "providing ample room" for an in-flight connectivity duopoly, said the analyst. He believes believe the current scale, footprint and next-generation architecture will extend Gogo's leadership and keeps a Buy rating on the shares with a $16 price target. Shares of Gogo are down 12%, or $1.51, to $11.15 in midday trading.