Gogo on Dec. 29 announced that Ronald LeMay will retire as the company’s Chairman and step down from the Board, effective Dec. 31. Shares of the inflight internet and entertainment provider lost 2.6% at the close on Tuesday.
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Following the retirement, Gogo (GOGO) CEO Oakleigh Thorne will succeed LeMay as Chairman and continue to serve as the company’s CEO.
Additionally, Director Hugh Jones will be appointed as the Lead Independent Director, effective Dec. 31, 2020. The board will consist of eight directors upon LeMay’s retirement.
“Ron was instrumental in guiding the company during some of the most challenging and pivotal times in Gogo’s history; culminating with the successful sale of our CA [commercial aviation] business to Intelsat earlier this year. I am honored to serve as Chairman as we execute our strategy to capitalize on the opportunities in the business aviation market and drive value for our customers, employees and shareholders,” Thorne commented.
On Dec. 1, Roth Capital analyst Scott Searle reiterated a Buy rating on GOGO stock and a price target of $13 (37% upside potential). Shares have gained 48% year-to-date.
Searle believes that the company’s plan to undertake comprehensive refinancing prior to May 2021 could help debt repayment efforts and cut interest payments by over 50%.
The analyst also cited the company’s free cash flow potential of about $100 million by 2023, growth in its business aviation segment, and a solidified position with 5G.
Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 2 Holds. (See GOGO stock analysis on TipRanks)
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