Jefferies Maintains a 'Buy' on DigitalGlobe (DGI); Meeting with Management
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Price: $34.40 --0%
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies maintains a 'Buy' on DigitalGlobe (NYSE: DGI) price target of $24.00.
Analyst, Howard A. Rubel, said, "Recently, we had the opportunity to meet with DGI management. Although there is risk of cuts to the EnhancedView contract, we believe that the current share price fails to reflect the opportunities and future prospects for DGI. There is a strong case to be made that the value of the partnership between DGI and the NGA will outweigh the need to cut government spending."
"Our current revenue and EPS estimates assume that the SLA will continue at the level that was set out when the contract was awarded in 2010. The contract was structured as a one- year contract, with nine one-year options. A change in the structure of the contract will likely change the pricing, we believe. If there were cuts, some capacity could be redeployed. We believe that there are areas such as the Middle East and Asia that have capacity constraints." (Jefferies lowers FY12 EPS estimate from $0.75 to $0.46 and FY13 from $1.21 to $0.84)
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 $12.87 yesterday.
Analyst, Howard A. Rubel, said, "Recently, we had the opportunity to meet with DGI management. Although there is risk of cuts to the EnhancedView contract, we believe that the current share price fails to reflect the opportunities and future prospects for DGI. There is a strong case to be made that the value of the partnership between DGI and the NGA will outweigh the need to cut government spending."
"Our current revenue and EPS estimates assume that the SLA will continue at the level that was set out when the contract was awarded in 2010. The contract was structured as a one- year contract, with nine one-year options. A change in the structure of the contract will likely change the pricing, we believe. If there were cuts, some capacity could be redeployed. We believe that there are areas such as the Middle East and Asia that have capacity constraints." (Jefferies lowers FY12 EPS estimate from $0.75 to $0.46 and FY13 from $1.21 to $0.84)
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 $12.87 yesterday.
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