BWS Financial Initiates Coverage on DG FastChannel (DGIT) with a Strong Buy

January 26, 2009 9:06 AM EST

BWS Financial initiates coverage on DG FastChannel (Nasdaq: DGIT) with a Strong Buy and $30 target.

BWS Financial analyst says, "DGIT is situated as being a high-growth story over the next three years. The transition to digital has sparked the initial flare that should attract some attention, but it is one to two quarters following the analog to digital deadline which could create much participation within the investment community. The numbers DGIT has posted so far have shown what could be possible because of their service. But, because of macroeconomic conditions, there are nonbelievers. DGIT should continue to generate the growth management has spoken of. We are projecting that would lead to a wider investor following. For second quarter 2009 we are forecasting year over year revenue growth of more than 57% and EBITDA growth of more than 43%...We would consider buying shares of DGIT ahead of the Company reporting fourth quarter results. The secondary catalyst would be the official switch to digital. DGIT shares have fallen with the rest of the market and have shown some relative strength to the general market since the beginning of the year. We would anticipate DGIT shares increasing in value over the next few weeks ahead of the switchover and then for the stock to move based upon quarterly results. DGIT shares do not seem to have much of a timeframe left trading in the teens if the Company is able to post the earnings numbers we are projecting."

DG FastChannel, Inc. (DGF) is a provider of digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters and other media outlets.

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