Piper Jaffray Reiterates Overweight On DG, Inc.

Piper Jaffray is reiterating its Overweight rating and $44 price target on shares of DG, Inc.

. In a note to clients, Piper Jaffray writes, "We reiterate our Overweight rating on DGIT following the announced acquisition of MediaMind (

) and partnership with SmartJog. We believe both deals make strong strategic sense, strengthening DG's diversified digital portfolio and growth platform outside North America. MDMD brings a superior rich media platform and international brand, while SmartJog brings a low-risk extension of DG's core ad distribution platform to Europe and other global markets. Despite potential integration risks, we believe a depressed valuation supports an attractive risk/reward proposition in the shares." Shares of DGIT lost 39 cents yesterday to close at $28.50, a loss of 1.35%.