Oppenheimer Gives a Buy Rating to Boingo Wireless Inc

By Carrie Williams

Oppenheimer analyst Timothy Horan assigned a Buy rating to Boingo Wireless Inc (NASDAQ: WIFI) today and set a price target of $30. The company’s shares closed yesterday at $21.51.

Horan commented:

“Boingo enables the sharing of indoor wireless infrastructure and spectrum for wireless carriers. Volumes are growing 50%+ annually on wireless networks, and the company is well positioned for 15%+ revenue growth in the next five years. Much of the basic infrastructure and operating expense is in place, and operating leverage will be very high (50%+ margins); we expect cash EBITDA to grow 3x in the next five years to ~ $105 million, and this is conservative. A concern for investors is that reported EBITDA is currently well above cash EBITDA, but the two will converge over time, for several reasons, in our view. The analyst day and bottom-up analysis have caused us to increase our FY18E adj. EBITDA by 4.5% to $91M. Investor Day Highlights page 5.”

According to TipRanks.com, Horan is a top 100 analyst with an average return of 13.9% and a 75.7% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Riverbed Technology, and Zayo Group Holdings.

Currently, the analyst consensus on Boingo Wireless Inc is Strong Buy and the average price target is $27.58, representing a 28.2% upside.

In a report issued on November 3, Northland Securities also reiterated a Buy rating on the stock with a $25.75 price target.

The company has a one-year high of $25.99 and a one-year low of $10.46. Currently, Boingo Wireless Inc has an average volume of 419.3K.

Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2017, Derek Peterson, the CTO of WIFI sold 50,000 shares for a total of $1,040,000.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Boingo Wireless, Inc. engages in the provision of mobile internet solutions for smart phones, tablet computers, laptops, and wireless-enabled consumer devices. It offers Wi-Fi subscriptions, Internet, and digital television. The company was founded by Sky Dylan Dayton on April 16, 2001 and is headquartered in Los Angeles, CA.