Markets & Finance

Deutsche Bank Lowers Digital Insight to 'Hold'

Deutsche Bank downgraded Digital Insight (DGIN) to hold from buy.

Analyst Richard Zandi says while the Internet banking company's third-quarter results clearly demonstrated leverage in the company's business model, Digital Insight lost a number of large customers in the quarter due to inattention or competitive weakness. He says he had not not anticipated such high attrition. Zandi cut the $0.15 fourth quarter earnings per share estimate to $0.12, and cut the $37 million revenue estimate to $34.4 million. He also cut the 81-cent 2003 earnings per share to 76 cents. Zandi notes that nearly 260 customers are up for renewal in the next six months. He says it remains to be seen whether high attrition rates will continue or abate. Until he gets better handle on this, Zandi says he advises investors to sit on the sidelines. He cut his $17 target to $13.

China's Killer Profits

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus