Table of Contents
Investment Thesis ....................................................................3
Earth Observation ....................................................................5
Earth Observation will increase satellite capacity........................................................5
Commercial satellite operations will grow. .................................................................7
Demand for satellite imaging will increase..................................................................9
Summary....................................................................................................................11
Competition ...............................................................................................................13
Consolidation .............................................................................................................14
Implications for NAVTEQ and Tele Atlas ................................................................16
Investment Opportunities ......................................................17
Ball Corporation (BLL/OW)......................................................................................17
DigitalGlobe (DGI/OW) and GeoEye (GEOY/OW) .................................................17
Comparing DGI and GEOY.......................................................................................18
DGI and GEOY look undervalued.............................................................................21
DigitalGlobe, Inc. (DGI/Overweight) ......................................24
Key investment points................................................................................................24
Investment risks .........................................................................................................25
Company description .................................................................................................26
Revenue outlook ........................................................................................................26
Domestic Defense & Intelligence ..............................................................................26
International Defense & Intelligence .........................................................................27
Commercial................................................................................................................28
Valuation and rating analysis.....................................................................................29
GeoEye, Inc. (GEOY/Overweight)..........................................31
Key investment points................................................................................................31
Investment risks .........................................................................................................31
Company description .................................................................................................32
Revenue forecast........................................................................................................32
Valuation and rating analysis.....................................................................................34
Appendices
Appendix I: Acronyms and Abbreviations ...........................35
Appendix II: NPV Per Satellite ...............................................36
Appendix III: Commercial Applications ................................37
Appendix IV: Inventory of Earth Observation Satellites .....38
Appendix V: Company Profiles .............................................41