WIFI - Boingo Wireless +6.4% as Oppenheimer expects deal upgrades to Outperform

Boingo Wireless (WIFI) is up 6.4% premarket after an upgrade to Outperform at Oppenheimer. It had downgraded to Perform in April amid valuation questions and pandemic uncertainties, but "the stock is now at a good entry point," the firm says. "We believe there's a high probability Boingo sells part or all of its business to towers or an infrastructure-focused private-equity firm in the next year," analyst Timothy Horan and team write. The company has some "very attractive" wireless assets across growing end markets - Military and Distributed Antenna Systems - and the stock is trading at 13x 2021 cash EBITDA, Oppenheimer says. That's also a 35% discount to a 20x purchase price, and a 25% discount to tower companies trading at about 25x 2021 EBITDA. It's keeping estimates unchanged, expecting a weak quarter on lower airport/venue traffic. But a sum-of-the-parts valuation justifies a $15 price target, it says, implying 71%

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Boingo Wireless +6.4% as Oppenheimer expects deal, upgrades to Outperform