Benchmark Downgrades GeoEye (GEOY) to Hold; Potential Impact from EnhancedView Cut
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Price: $35.83 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark downgraded GeoEye (NASDAQ: GEOY) from Buy to Hold with a price target of $26.00.
Benchmark analyst says, "Our downgrade is based on three factors: (1) A cut to the EnhancedView (EV) program funding in FY12 could potentially impact the company’s outlook more than DigitalGlobe this year based on the SLA structure. (2) GeoEye has a smaller imagery library and less satellite capacity to drive better than expected international and commercial growth in the coming year, until the GeoEye-2 satellite launch in 2013. (3) GEOY is trading at 4.8x FY12 EV/EBITDA, the same multiple as DGI, while GEOY expects mid single-digit revenue growth compared to DGI’s double-digit revenue growth and significantly higher earnings growth."
For an analyst ratings summary and ratings history on GeoEye click here. For more ratings news on GeoEye click here.
Shares of GeoEye closed at $23.13 yesterday.
Benchmark analyst says, "Our downgrade is based on three factors: (1) A cut to the EnhancedView (EV) program funding in FY12 could potentially impact the company’s outlook more than DigitalGlobe this year based on the SLA structure. (2) GeoEye has a smaller imagery library and less satellite capacity to drive better than expected international and commercial growth in the coming year, until the GeoEye-2 satellite launch in 2013. (3) GEOY is trading at 4.8x FY12 EV/EBITDA, the same multiple as DGI, while GEOY expects mid single-digit revenue growth compared to DGI’s double-digit revenue growth and significantly higher earnings growth."
For an analyst ratings summary and ratings history on GeoEye click here. For more ratings news on GeoEye click here.
Shares of GeoEye closed at $23.13 yesterday.
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