Morgan Keegan Initiates Coverage On DigitalGlobe With Market Perform Rating

According to Morgan Keegan, DigitalGlobe's DGI coverage is initiated with a market perform rating. Morgan Keegan reported that DigitalGlobe is a leading provider of high-resolution satellite imagery and associated value-added services. “Key investment points include being a leading participant in the rapidly growing satellite imagery market, having a long term stable revenue base from the National Geospatial Intelligence Agency (NGA), having significant excess capacity, and significant growth potential. We are optimistic about the outlook for DigitalGlobe but see shares of DGI as fairly valued at current levels (we note the company is trading at a significant premium to its closes comparable, GeoEye (GEOY O/S - $39.80). We are initiating coverage of DGI with a Market Perform investment rating and $33 price target.” DigitalGlobe closed yesterday at $28.79.