Analyst Sees No Hope for Another Digital Generation (DGIT) Bid

Following Wednesday's late-day rumor Digital Generation (Nasdaq: DGIT) rejected a $20 per share bid from Extreme Reach and the resulting 26 percent surge in the stock, Piper Jaffray's Mark Zgutowicz issued some pessimistic comments Thursday morning.

The analyst sees even a $12-$13 offer from a financial bidder as unlikely given continued deterioration in Digital Generation's financials. Zgutowicz believes Extreme Reach would be the only company which could see immediate synergies from a purchase of Digital Generation.

Piper Jaffray maintains an Underweight rating and $8 price target on shares of Digital Generation. With the stock trading down nearly 3 percent to $11.78 at last check, Zgutowicz's price target implies potential downside of about 32 percent.

Track all the market-moving analyst calls on shares of Digital Generation with our Analyst Ratings page.

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