UPDATE: Benchmark Reiterates Buy Rating on DigitalGlobe

Benchmark reiterated a Buy rating on DigitalGlobe (NYSE: DGI) and a price target of $24.

Benchmark wrote, “Yesterday DigitalGlobe and GeoEye announced that both boards have approved a definitive merger agreement under which DigitalGlobe will pay GeoEye shareholders $20.27 per share in a combination of stock and cash (1.137 shares of DGI stock and $1.40 per share in cash) or 100% cash or stock, provided that the total cash for the transaction does not exceed $90 million. The offer reflects a 34% premium to GeoEye's 7/20 closing pricing of $15.17 per share.”

DigitalGlobe closed at $15.04 on Monday.