Piper Jaffray Sees Compelling Risk/Reward on Digitalglobe (DGI); Reiterates Overweight

Piper Jaffray reiterates an Overweight rating and $46.00 price target on DigitalGlobe (NYSE: DGI) after revisiting the catalysts for DGI. Analyst Peter Appert believes that the growth drivers are in place, and assumes 12.2% revenue growth in 2015. This creates a compelling risk/reward ratio, showing a 15% discount on shares.

Appert commented, "DGI shares have lagged the market thus far in 2015 (down 2.5% vs. S&P500's 3.0% gain) as investors await evidence of improved revenue growth, particularly in the commercial channel. While we acknowledge that results will likely be back-half loaded, we believe the company is well positioned to report accelerating revenue growth, margin improvement and a sharp inflection in free cash flow as 2015 progresses. We believe these can be the catalysts to stronger share price performance in the second half."

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 $29.66 yesterday.

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