Benchmark Starts GeoEye (GEOY) at Buy; Strong Visibility from Long-Term Government Contract and Potential Upside for 2012
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Price: $35.83 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark initiates coverage on GeoEye (NASDAQ: GEOY) with a Buy. PT $46.
Benchmark analyst says, "We believe this is a conservative multiple for a company with solid visibility for 15%+ revenue and EBITDA growth potential over the next 3-5 years from a long-term, high-priority government contract. GEOY is a leading satellite imagery provider and one of two companies selected by the National Geospatial-Intelligence Agency (NGA) for the government’s $7 billion, 10-year EnhancedView (EV) contract. Our $46 price target is also supported by a DCF analysis based on a conservative assumption of 5% growth outside of the NGA contract."
"We believe GeoEye could be an acquisition target for a defense contractor to expand its Intelligence Surveillance Reconnaissance (ISR) footprint and leverage its satellite imagery into commercial expansion, or it could be taken private based on attractive valuation and strong long-term fundamentals. Cerberus currently owns 20% of the company."
For more ratings news on GeoEye click here and for the rating history of GeoEye click here.
Shares of GeoEye closed at $37.45 yesterday.
Benchmark analyst says, "We believe this is a conservative multiple for a company with solid visibility for 15%+ revenue and EBITDA growth potential over the next 3-5 years from a long-term, high-priority government contract. GEOY is a leading satellite imagery provider and one of two companies selected by the National Geospatial-Intelligence Agency (NGA) for the government’s $7 billion, 10-year EnhancedView (EV) contract. Our $46 price target is also supported by a DCF analysis based on a conservative assumption of 5% growth outside of the NGA contract."
"We believe GeoEye could be an acquisition target for a defense contractor to expand its Intelligence Surveillance Reconnaissance (ISR) footprint and leverage its satellite imagery into commercial expansion, or it could be taken private based on attractive valuation and strong long-term fundamentals. Cerberus currently owns 20% of the company."
For more ratings news on GeoEye click here and for the rating history of GeoEye click here.
Shares of GeoEye closed at $37.45 yesterday.
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