UPDATE: Benchmark Downgrades GeoEye to Hold on NGA Notification

Benchmark lowers its rating on GeoEye

from Buy to Hold and lowers its price target to $20 a share. Benchmark comments, "After Friday's close, the National Geospatial-Intelligence Agency (NGA) informed GEOY that it would not fully exercise GEOY's year three EnhancedView (EV) contract due to funding shortfalls; rather, the NGA will extend GEOY at current levels ($13.25 million per month) for three months until November, with the option to extend the contract for another nine months at the same level if funding is available. Best case appears to be a 50% EV cut; worst case could be default in April." GEOY closed at $18.34 on Friday.