In a report published Monday, Piper Jaffray reiterated its Overweight rating and $32 price target on DigitalGlobe
DGI
Piper Jaffray reported that, “With the acquisition of GEOY, DGI adds advanced
production and analytic capabilities, expanded satellite capacity, and $1.8B of
expected synergies. These incremental capabilities should drive faster revenue growth,
higher margins and meaningfully improved free cash flow for the "New" DGI over the
next several years. Management noted a "sea of opportunity" for pricing and capacity
optimization in the combined entity, which we expect to drive mid-teens (or better)
organic revenue growth and adj. EBITDA margins of 50%+ by 2015 (from 36% in
2013E). Importantly, DGI's library (which generated 90% of 4Q 2012 commercial
revenues) and the cost and time to build satellites represent significant barriers to entry
(see pg. 2 for a summary of competitive dynamics).”
Shares of DigitalGlobe closed at $29.41 on Friday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in