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Fly News Breaks for September 24, 2019
DAL, GOGO
Sep 24, 2019 | 08:51 EDT
Yesterday evening, Delta Air Lines (DAL) Twitter indicated that it does not expect to launch free Wi-Fi in the next three months, a revision from its Twitter comment earlier in the day, William Blair analyst Louie DiPalma tells investors in a research note. The analyst notes that neither Delta nor Gogo has provided any timeline for the launch, other than Delta's CEO last week saying that it should be available soon. DiPalma expects the launch to take place in Q3 of 2020. However, he believes the "Twitter walk-back" may invigorate bearish investors who believe that Gogo's inflight connectivity system cannot handle free Wi-Fi. Since Gogo has nine-times leverage and trades at a premium valuation, multiple compression resulting from the inability to meet Delta's demands "could result in a significant decline in equity value," says the analyst. Bullish investors want Delta to launch free Wi-Fi as soon as possible because of a potential positive step function increase to Gogo's EBITDA, he adds. DiPalma still projects Gogo shares in 2021 will appreciate to a range of $10 to $15. He keeps an Outperform rating on the name.
News For GOGO;DAL From the Last 2 Days
DAL
Jan 20, 2021 | 09:56 EST
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Netflix (NFLX) upgraded to Buy from Neutral at UBS and upgraded to Overweight from Equal Weight at Wells Fargo following Q4 results. 2. Boeing (BA) upgraded to Hold from Sell at Berenberg with analyst Andrew Gollan saying Boeing is a "deeply wounded organization," but the restart of 737 Max deliveries in December marked a turning point toward a financial recovery. 3. DraftKings (DKNG) upgraded to Overweight from Equal Weight at Morgan Stanley with analyst Thomas Allen saying his channel checks suggest that 2021 should "stand out as an exceptionally strong year of legalization," and that he expects 12 states to legalize sports betting this year. 4. Delta Air Lines (DAL) upgraded to Buy from Hold at Argus with analyst John Staszak saying the company will face a difficult first half of FY21 but will likely return to profitability in the second half and into FY22. 5. Halliburton (HAL) upgraded to Overweight from Equal Weight at Stephens with analyst Tommy Moll saying he expects the company to benefit from the rapidly-improving level of completion activity in the U.S. in the near-term. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.