In-flight broadband Internet services provider Gogo, Inc. (NASDAQ: GOGO) closed 7.6% higher on Wednesday. It gained another 1.7% in after-hours trading to end the day at $20.99. Further, the stock was trading almost 0.5% up in the pre-market session at the time of writing on Thursday.
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The price jumps follow the company’s announcement on Tuesday that GOGO stock will be included on the S&P SmallCap 600 index from Friday, April 8. Gogo will replace SPX FLOW Inc. (NYSE: FLOW) on the index.
Colorado-based Gogo offers in-flight broadband Internet connectivity and wireless entertainment services to the commercial and business aviation markets.
According to Gogo, over 2,500 commercial aircraft and 6,600 business aircraft have been equipped with its onboard Wi-Fi services.
Wall Street’s Take
Last month, after the company released upbeat fourth-quarter results, Roth Capital analyst Scott Searle maintained a Buy rating on the stock and raised the price target to $21 from $20.50 (1.7% upside potential).
The analyst said, “Gogo continues to be underappreciated given its duopoly-like status, strong demand characteristics, underpenetrated market, and strong financial characteristics.”
Based on two Buys and two Holds, Gogo has a Moderate Buy consensus rating. GOGO’s average price target of $19.67 implies 4.8% downside potential from current levels. Shares have gained almost 99% over the past year.
Investor Opinions
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Gogo, as 28.2% of investors on TipRanks increased their exposure to the stock over the past 30 days.
Conclusion
The S&P SmallCap 600 index tracks the performance of U.S.-based companies with a market cap of between $850 million and $3.6 billion. Gogo currently has a market cap of nearly $2.3 billion, and its inclusion in the index could make the stock attractive to investors.
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