What happened Shares of Gogo (NASDAQ: GOGO) extended a rally today that started earlier this week, closing up 29% after investors and analysts continued to express positive sentiments regarding the recently announced sale of the commercial aviation (CA) business to Intelsat. The jump follows yesterday's 43% gain. So what In the immediate wake of the news, Roth Capital had boosted its price target on Gogo from $8 to $10. Analyst Scott Searle called the deal "transformative," as Gogo's CA business has been a drag on results. While the CA segment in North America was profitable before the COVID-19 pandemic struck, the CA business in the rest of the world has long been hemorrhaging cash. Image source: Getty Images. Divesting the segment will remove those EBITDA losses while unlocking value from the remaining business aviation (BA) segment, according to Searle. The analyst notes that Gogo's BA segment is a clear leader in its market, which is both underpenetrated and growing, with an estimated 90% market share. Now what The $400 million in proceeds will strengthen Gogo's balance sheet, which had $156.3 million in cash and over $1.1 billion in debt at the end of the second quarter. The company plans to use the money to improve its debt position while investing in opportunities around 5G. The credit rating division of S&P Global upgraded its credit outlook on Gogo from negative to positive based on the deal. 10 stocks we like better than GogoWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Gogo wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source