Canaccord Genuity Morning Coffee on GeoEye (GEOY): From A Bird's Eye View
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Price: $35.83 --0%
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 35 | New: 12
Rating Summary:
4 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 35 | New: 12
Trade GEOY Now!
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%.
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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%.
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