4G·

Galileo and Gogo 5G to drive hardware demand in 2025 and service demand in 2026!

Hello my dears,

Now that $GILT (+2,07%) Gilat has found a place in my portfolio. The next satellite share is just around the corner. Which I would like to introduce to you today.

$GOGO (+1,15%) Gogo

2027. 2026. 2025

KGV 15.94 19.61 32.16

PEG. +0,85. +0,50

Profit growth +23.65% +54.17% +380.00%

Sales in million 966.00. 935.91. 903.35

Profit in million 119.85. 95.82. 59.40

Free cash flow in million 152.44. 123.61. 78.59

EbiT margin. 19,31%. 18,67%. 15,60%


Due to the good multiples, I am considering adding Gilat's competitor to the portfolio in the event of a consolidation.

The P/E ratio is falling and the PEG is below 1.

Important key figures are rising.


Gogo Inc (GOGO) is one of the leading providers of WLAN services for aviation and offers business aviation services in particular. The niche player is thus benefiting in particular in the business aviation segment, where demand for connectivity in aviation is growing. Expansion is also being accelerated. At the end of September, it was announced that an agreement had been reached to acquire Satcom Direct. According to the agreement, the purchase will cost USD 375 million in cash and five million Gogo shares. In addition, further payments of up to USD 225 million are possible, which are linked to the achievement of certain performance targets over the next four years. The transaction is expected to be immediately accretive to earnings and cash flow per share and is expected to generate annual cost synergies in the range of USD 25 to 30 million in the two years following closing.


On November 5, the Group's Q3 report was convincing. According to the report, turnover increased by 2.6% year-on-year to USD 100.50 million. Meanwhile, tax effects and the acquisition of Satcom Direct caused EPS to fall from USD 0.16 to USD 0.08. Nevertheless, the management was satisfied, as the basis for future growth was laid with the takeover. It is expected to accelerate Gogo Galileo's market penetration in the globally underserved business aviation market as well as in the military and government segments. Oakleigh Thorne, Chairman and CEO of Gogo, added: "The unprecedented demand for Galileo and Gogo 5G will drive strong growth in equipment sales in 2025 and an increase in profitable recurring service revenue from 2026." Meanwhile, the consensus for Q3 was only USD 97.3m in revenue and EPS was expected to be USD 0.05.


For the current financial year, the Group is still targeting revenue in the range of USD 400 million to USD 410 million, but adjusted EBITDA is now expected to reach USD 120 million to USD 130 million instead of the upper end of a range of USD 110 million to USD 125 million. This guidance reflects increased legal costs due to ongoing litigation and approximately USD 20 million in operating expenses for strategic and operational initiatives, including Gogo 5G and Gogo Galileo. The forecast range for free cash flow has also been raised. Instead of a range of USD 35 million to USD 55 million, a range of USD 55 million to USD 65 million is now being targeted. This includes USD 35 million in reimbursements from the FCC Reimbursement Program.

https://www.gogoair.com/


https://mobile.aktien-mag.de/nachrichten/chart-tweets/gogo-inc-galileo-und-gogo-5g-sollen-2025-die-hardware-und-2026-die-service-nachfrage-antreiben/id-130328

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14 Commenti

immagine del profilo
I'm always amazed at the companies you discover. Do you actually use an analysis program where you enter certain parameters that are important to you and it then spits out such companies for you?
immagine del profilo
@Multibagger
My dear,
I have very different approaches.
I often look for interesting sectors.
Or companies that are experiencing hype, such as Eutelsat.
And then I pick out all the companies from the sector. After that, however, I'm only interested in companies with positive momentum.
In the case of Gilat, however, I looked at Israeli shares, so I only looked at one country.
What's hot at the moment and could fit into the portfolio. But I already have too much aviation in my portfolio again.
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immagine del profilo
@Tenbagger2024 Wouldn't it be better to first carry out a complete analysis of all companies in this sector, select them, prioritize them and then enter them in order to avoid overweighting? That way, you will discover a new interesting opportunity every week that may promise even more growth.
Just an idea!
immagine del profilo
@Multibagger
Yes, of course I do it from time to time.
But I also find it very difficult in some areas. These are often companies that are not profitable and perform very well. But here you really have to weigh up the risk/reward. That's why I almost always opt for companies that are already profitable or will become profitable.
It was really difficult with the drone suppliers, but I think AeroVironment was a good decision. And Gilat is also very profitable, unlike other satellite companies.
And in the end, we as small investors are far too little involved in the companies anyway. And we don't know exactly what will happen and how the company will expand. Any positive news is enough. That's why it's often difficult to choose the right company in the growth sectors.
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immagine del profilo
@Tenbagger2024
And the discovery thing is a problem anyway.
In principle, I'm constantly discovering new companies with great multiples and an exciting story.
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immagine del profilo
@Tenbagger2024 then I have a new challenge for you. Germany wants to develop a cyber dome together with Israel. I wonder who would benefit from this? $PLTR ? Who else?

https://www.n-tv.de/politik/Dobrindt-will-mit-Israel-einen-Cyber-Dome-aufbauen-article25867088.html
immagine del profilo
@Multibagger
I could imagine that $ESLT should benefit here.
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immagine del profilo
@Multibagger
How do you see gogo on the chart? Is there a consolidation coming? Where do you see a good entry price?
immagine del profilo
@Tenbagger2024 It would either have to rise above 13.50 or come back to 9.50, I would say.
immagine del profilo
@Multibagger
Are you also interested?
immagine del profilo
@Tenbagger2024 Since I was at a party today, as I wrote elsewhere, I haven't looked into it any further. But I don't think so at the moment because I have other values in mind and my available capital is limited.
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Visualizza un'altra risposta
But they're all still small companies, so I'll wait and see whether they get bigger or not. Many small companies die quickly due to competition. But they are exciting
immagine del profilo
@DerUnwissende
I don't think they will die so much as takeover candidates, which should drive the price up.
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