Boingo Wireless (WIFI) Cost Savings Offset By COVID, Roth Capital Reiterates Buy

Roth Capital analyst Scott Searle reiterated a Buy rating and $23.00 price target on Boingo Wireless (NASDAQ: WIFI) after headwinds from COVID and merger activity muted pressured 2Q20 sales but better GMs and op-ex offset the $3M shortfall (~5%) to produce higher than expected EBITDA. Importantly, long-term industry fundamentals remain unchanged with all network capacity trends benefiting Boingo; 5G, CBRS, WiFi 6, etc. That stated, Boingo remains actively engaged with multiple strategic parties which will overshadow near-term results and LT fundamentals. While we are taking this opportunity to lower our sales estimates (EBITDA unchanged).

The analyst stated "Despite the macro COVID and merger headwinds (Sprint/T-Mobile), long-term trends remain unchanged. Effectively, every element that adds to incremental wireless network capacity benefits Boingo; next generation standards (5G), new carrier deployments (DISH Networks 5G build), increasing global spectrum (mmWave, C-band, etc), shared spectrum initiatives (CBRS), neutral host models and private networks, WiFi 6, etc. Overall, we believe that Boingo continues to build a pipeline of new opportunities and a multi-billion-dollar TAM".

For an analyst ratings summary and ratings history on Boingo Wireless click here. For more ratings news on Boingo Wireless click here.

Shares of Boingo Wireless closed at $13.04 yesterday.

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