Update shared on 12 Dec 2025
Analysts have nudged their price target on Gogo to 11.00 dollars from 11.00 dollars, effectively reaffirming their prior valuation as they balance sharply slower revenue growth expectations with slightly higher projected profit margins and a modestly lower future earnings multiple.
What's in the News
- A jury in Delaware found Gogo willfully infringed four SmartSky Networks patents covering high-speed inflight ATG connectivity, awarding approximately 22.7 million dollars in past damages. SmartSky is seeking enhanced and running royalties on patents expiring in 2033 and 2035 (Lawsuits and legal issues).
- Gogo reiterated 2025 earnings guidance, expecting total revenue at the high end of the previously guided range of 870 million to 910 million dollars (Corporate guidance).
- The company advanced testing of its next-generation 5G air-to-ground network, validating 5G chip performance in terrestrial trials and beginning flight testing on a Pilatus PC-24, with full service activation targeted before the end of 2025 and initial 5G revenue in the first quarter of 2026 (Product-related announcements).
- Gogo and its partners secured multiple new certifications for Galileo and Plane Simple terminals from the FAA and EASA, expanding approved installations across Boeing BBJ, Dassault Falcon, and Bombardier Global business jets and enabling higher-speed global connectivity (Regulatory and product-related announcements).
- SD Government, now part of Gogo, won a five-year, sole-source U.S. government contract initially valued at 3 million dollars to consolidate multiband, multiorbit airborne satellite communications for a federal agency, with options to add new technologies over time (Client announcements).
Valuation Changes
- Fair Value Estimate: unchanged at 11.00 dollars per share, reflecting a steady overall valuation despite shifts in underlying assumptions.
- Discount Rate: risen modestly from 6.40 percent to about 6.96 percent, implying a slightly higher required return and risk premium.
- Revenue Growth: reduced sharply from approximately 22.6 percent to about 4.8 percent, signaling a materially more conservative outlook for top line expansion.
- Net Profit Margin: increased moderately from roughly 14.6 percent to about 17.1 percent, incorporating expectations for improved profitability.
- Future P/E Multiple: edged down from about 12.9 times to roughly 11.8 times, indicating a slightly lower valuation multiple applied to forward earnings.
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