Jefferies Maintains a 'Buy' on DigitalGlobe (DGI); GeoEye (GEOY) Misses Mark, DGI Sitting Pretty
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Price: $34.40 --0%
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies maintains a 'Buy' on DigitalGlobe (NYSE: DGI) price target of $24.00.
Analyst, Howard A. Rubel, said, "GeoEye (Nasdaq: GEOY) received notification from the NGA of a proposed change to the third year of the EnhancedView Service Level Agreement and an offer of reduced funding for the GeoEye-2 satellite cost share agreement. Due to Federal Government funding shortfalls, the NGA plans to let the option for the third year of the SLA, which runs from September 1st 2012 through August 31st 2013, lapse."
Now DigitalGlobe is in a strong position because it will hold its volumes while GEOY's revenues and funding are pulled back. The decision further verified that DGI should be trading at a premium to GEOY. Analyst, Howard Rubel believes DGI is benefiting from the maturity and capacity of its current infrastructure. We further believe DGI could use the more secure FY13 government funding as a competitive advantage in commercial and international marketing."
For an analyst ratings summary and ratings history on DigitalGlobe click here. For more ratings news on DigitalGlobe click here.
Shares of DigitalGlobe closed at $15.60 yesterday.
Analyst, Howard A. Rubel, said, "GeoEye (Nasdaq: GEOY) received notification from the NGA of a proposed change to the third year of the EnhancedView Service Level Agreement and an offer of reduced funding for the GeoEye-2 satellite cost share agreement. Due to Federal Government funding shortfalls, the NGA plans to let the option for the third year of the SLA, which runs from September 1st 2012 through August 31st 2013, lapse."
Now DigitalGlobe is in a strong position because it will hold its volumes while GEOY's revenues and funding are pulled back. The decision further verified that DGI should be trading at a premium to GEOY. Analyst, Howard Rubel believes DGI is benefiting from the maturity and capacity of its current infrastructure. We further believe DGI could use the more secure FY13 government funding as a competitive advantage in commercial and international marketing."
For an analyst ratings summary and ratings history on DigitalGlobe click here. For more ratings news on DigitalGlobe click here.
Shares of DigitalGlobe closed at $15.60 yesterday.
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