Canaccord Genuity Morning Coffee on GeoEye (GEOY): From A Bird's Eye View

June 26, 2012 10:32 AM EDT
Get Alerts GEOY Hot Sheet
Price: $35.83 --0%

Rating Summary:
    4 Buy, 6 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 16 | New: 54
Trade GEOY Now!
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on GeoEye (Nasdaq: GEOY): From a bird's eye view.

Shares of GeoEye fell sharply (yesterday) after the company said the U.S. National Geospatial Intelligence Agency (NGA) will not renew the EnhancedView contract, making the satellite imagery provider a potential takeover target. The NGA instead proposed a three month option under which GeoEye will get service revenue of $39.75 million and a potential further nine month follow-up option, contingent on funding. The NGA has also cancelled the $156 million unfunded portion of the GeoEye-2 cost share. Rival DigitalGlobe (NYSE: DGI) which has a similar EnhancedView contract with NGA, said last week the agency would exercise its one-year contract renewal. Government officials earlier said the NGA plans to sharply reduce, and possibly halve, its plan to buy $7.3 billion of digital imagery from the two companies, sparking speculation about a consolidation. GeoEye offered to buy DigitalGlobe in a cash and stock deal worth $790 million, but Digital Globe rejected the offer.

Shares of GEOY are trading down another 2% this morning. DGI is down about 1%.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Corporate News, Mergers and Acquisitions, Rumors, Trader Talk

Related Entities

Canaccord Genuity

Add Your Comment