Why Are Gogo Shares Trading Higher Today?

Gogo Inc GOGO hosted an investor call on September 30 to discuss the increased long-term financial targets.
The presentation disclosed that 85% of all broadband-connected business aviation aircraft in North America use Gogo.
Gogo operates in an underpenetrated market with penetration of just ~30%. Gogo expects ~50% growth to over 11,000 aircraft with connectivity by 2025.
Gogo's competitive advantages include a future-proof AVANCE platform, proprietary ATG network, and differentiated GTM strategy.
The AVANCE penetration is a cornerstone of Gogo's strategy for long-term revenue and ARPU growth.
The market tailwinds driving flight demand include pandemic-triggered demand for private air travel, creating Gogo's significant opportunity. Customers are increasingly expecting in-air connectivity standards, which is Gogo's USP.
Gogo's network infrastructure is both a significant differentiator and foundation for future growth. Gogo is also uniquely positioned for geographic and adjacent market expansion.
Analyst Rating: Roth Capital analyst Scott Searle raised the firm's price target on Gogo to $20.50 from $16.50 and kept a Buy.
The company this morning provided a more detailed update of its upwardly revised long-term financial model of 15% annual sales growth, 45% EBITDA margins, and $200 million free cash flow by 2025, Searle notes.
The underpenetrated market, sustained demand, key technology differentiators, and a defensible market position add to Gogo's "attractive and sustainable" long-term position.
He believes the in-flight connectivity market is "poised for a decade-long opportunity for growth."
Price Action: GOGO shares traded higher by 10% at $18.47 on the last check Thursday.

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