Carlo Allegri | Reuters
People use their smart devices on an American Airlines airplane, which is equipped with Gogo Inflight Internet service, enroute from Miami to New York.
Investors should buy Gogo because its faster in-flight internet access services will drive sales growth, according to Raymond James, which initiated the company with an outperform rating.
“Since inception, Gogo has been a leader in providing connectivity to the plane,” analyst Ric Prentiss wrote in a note to clients Tuesday. His bullish “thesis is underpinned by Gogo’s rollout of its proprietary 2Ku satellite solution and the upgrade of its ATG [air-to-ground] network by 2018, which should further solidify Gogo’s position as a leader in the IFEC [in-flight entertainment and connectivity] segment.”