DigitalGlobe, Inc. (DGI, Financial), a provider of satellite-based earth imagery and services, was down during the second quarter. It’s not completely clear why shares have dropped, though some investors appear concerned about potential competitors that will have products in space over the next few years. Our due diligence indicates that DigitalGlobe has a superior product and strong customer relationships, including within the U.S. defense agencies, and management has executed well so far. With shares trading at multiples below those of defense-oriented companies, we believe DigitalGlobe’s current valuation is attractive. (Randy Gwirtzman)
From Baron Funds’ second quarter 2015 commentary.
