UPDATE: J.P. Morgan Initiates Gogo at Overweight on Long-Term Contracts for Broadband in the Sky

In a report published on Tuesday, J.P. Morgan analyst Philip Cusick initiated coverage on Gogo (NASDAQ: GOGO) with an Overweight rating and a $17 price target.

In the report, J.P. Morgan stated, "We believe that Gogo offers domestic airlines the fastest and lowest cost entry to in-flight broadband with flexibility to upgrade to faster options as they become available. Internationally, we see Gogo as one of two or three companies with credible experience in both aftermarket broadband system installation and customer management, and expect it to win a substantial share of the global market. Ancillary services (e.g., Gogo Vision) could increase Gogo's attractiveness to airlines as well."

Gogo closed on Monday at $14.