UPDATE: Oppenheimer Starts Boingo Wireless (WIFI) at Outperform
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(Updated - September 14, 2016 9:32 AM EDT)
Oppenheimer initiated coverage on Boingo Wireless (NASDAQ: WIFI) with an Outperform rating and a price target of $12. Analyst Timothy Horan said the company is well positioned to leverage data growth.
"Boingo is well through a radical transformation that positions it to benefit from the secular growth in data usage. We expect mobile data traffic to grow 10x in the next six years, and Boingo can uniquely aid this growth through small cells that combine LTE and Wi-Fi roaming to wireless and cable operators. Boingo can be the low-cost provider of offloaded wireless data traffic in dense areas. We believe growth in data usage will necessitate a 25-50% increase in cell site equivalent locations, driving 20%plus growth in small cell growth (Wi-Fi and LTE). Given the secular tailwinds, we believe that Boingo can grow revenue by 12% and EBITDA by 15% per year," said Horan.
Shares of Boingo Wireless closed at $8.94 yesterday.
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