UPDATE: JP Morgan Downgrades DigitalGlobe to Neutral on Relative Valuation
JP Morgan lowers its rating on DigitalGlobe (NYSE: DGI) from Overweight to Neutral, but reiterate its $18.50 price target.
JP Morgan comments, "The stock is up 25% since May 1 (S&P500 down 8.6%) and is now trading at parity with peer GEOY. Over the near term, we continue to believe that DGI is fundamentally better positioned than GEOY to weather potential cuts to the EnhancedView budget and we maintain our constructive outlook for both stocks over the long run. That said, the stocks' multiples will probably remain depressed until we get clarity regarding the US government's longer-term commitment to the commercial satellite imagery industry."
DGI closed at $15.34 on Monday.
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