Benchmark Analyst on GeoEye (GEOY): EnhancedView Uncertainty Curbs Takeout Upside in the Near-Term; Shares Drop 6%
Tweet
Share
E-mailGet Alerts GEOY Hot Sheet
Price: $35.83 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Shares of GeoEye (Nasdaq: GEOY) fell over 6% today after Benchmark downgraded the stock from Buy to Hold, citing the potential negative impact from EnhancedView cut.
Analyst, Josephine Millward, said, "EnhancedView uncertainty curbs takeout upside in the near term: Rumors surfaced in late July that the company had hired Goldman Sachs (NYSE: GS) to explore a potential sale, driving the stock to a 52-week high of almost $45; however, DealReporter reported that the sale had been called off in late November. we think a sale of the company in the coming year is unlikely with large defense primes facing long-term budget uncertainty with potential sequestration in an election year, unless the its largest shareholder, Cerberus Capital, decides to take it private."
Although, Millward, felt that there are near-term issues, she commented on perspective farther out..."We continue to like the long-term prospects of GEOY and believe the government will likely continue its support for EV in the long term. We believe that GeoEye’s $110 million cost-share payment from the NGA, scheduled for September 2012, should be fully funded, but we remain cautious based on continued budget uncertainty in the coming year."
Analyst, Josephine Millward, said, "EnhancedView uncertainty curbs takeout upside in the near term: Rumors surfaced in late July that the company had hired Goldman Sachs (NYSE: GS) to explore a potential sale, driving the stock to a 52-week high of almost $45; however, DealReporter reported that the sale had been called off in late November. we think a sale of the company in the coming year is unlikely with large defense primes facing long-term budget uncertainty with potential sequestration in an election year, unless the its largest shareholder, Cerberus Capital, decides to take it private."
Although, Millward, felt that there are near-term issues, she commented on perspective farther out..."We continue to like the long-term prospects of GEOY and believe the government will likely continue its support for EV in the long term. We believe that GeoEye’s $110 million cost-share payment from the NGA, scheduled for September 2012, should be fully funded, but we remain cautious based on continued budget uncertainty in the coming year."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- ByteDance Prefers TikTok Shutdown in US if Legal Options Fail - Reuters
- Amazon.com (AMZN) PT Raised to $215 at UBS
- Bristol-Myers Squibb Co. (BMY) PT Lowered to $64 at Truist Securities
Create E-mail Alert Related Categories
Analyst Comments, Downgrades, RumorsRelated Entities
Cerberus CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
