Imperial Capital Sees Good Things Ahead For Global Eagle Entertainment Inc.

In a report published Wednesday, Imperial Capital analyst Bob McAdoo reiterated an Outperform rating and $22.00 price target on Global Eagle Entertainment Inc. (NASDAQ: ENT).

In the report, Imperial Capital noted, "We are maintaining our Outperform rating and our one-year price target of $22 on shares of ENT. Following Global Eagle's first ever investor day on 3/18/15, we have greater confidence in the company's ability to leverage its current Ku-band technology and digital media solutions business to develop a leading inflight connectivity and content business. Long-term company objectives suggest meaningful growth in connected aircraft, revenue per aircraft, and expanded EBITDA margins.

"In our view," they added, "the capability to leverage its current content relationships with more than 150 airlines, coupled with the opportunity to package content and connectivity product, make ENT shares more attractive than peers. We believe earnings growth and share appreciation should largely mirror the flow of new connectivity and content agreements. Additionally, we believe our earnings estimates and valuation should become more meaningful as time passes and the company develops. Our price target represents 68% potential upside from recent trading levels."

Global Eagle Entertainment Inc. closed on Tuesday at $14.29.