Dougherty Downgrades GeoEye (GEOY) to Neutral on President’s FY13 budget
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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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Dougherty & Company downgraded shares of GeoEye Inc. (Nasdaq: GEOY) today from Buy to Neutral, while slashing its price target from $50 to $20.
"We believe that the President’s FY13 budget request has suggested a cut level to EnhancedView that is larger than we had anticipated, "reports an analyst at the firm. "We believe that this cut of $300MM, or 41% of our estimate of the NGA’s EnhancedView spending baseline in FY13, raises serious questions about the government’s willingness to help sustain GeoEye’s business strategy."
The company has already invested $518 million in its next satellite, GeoEye-2, and was looking to the NGA for $330MM in cost-share payments over the next two fiscal years.
For FY11 and FY12, the firm forecasts EPS of $2.05 and $2.16 on $350.3 million and $368.5 million in revenues.
"We believe that the President’s FY13 budget request has suggested a cut level to EnhancedView that is larger than we had anticipated, "reports an analyst at the firm. "We believe that this cut of $300MM, or 41% of our estimate of the NGA’s EnhancedView spending baseline in FY13, raises serious questions about the government’s willingness to help sustain GeoEye’s business strategy."
The company has already invested $518 million in its next satellite, GeoEye-2, and was looking to the NGA for $330MM in cost-share payments over the next two fiscal years.
For FY11 and FY12, the firm forecasts EPS of $2.05 and $2.16 on $350.3 million and $368.5 million in revenues.
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