Needham reiterates its buy rating on Digital Insight (DGIN).
Analyst Andrew Jeffrey says Digital Insight is an attractive risk/reward opportunity for aggressive growth investors seeking to capitalize on the growing consumer and business adoption of Internet banking and related services. He views Digital Insight as a technology leader, a low-cost provider, and the chief beneficiary of these trends.
Jeffrey says he's impressed by an increasingly diverse product offering, the ability to maintain strong pricing despite a higher churn in the installed customer base, and growing core Internet banking enablement competition. Jeffrey notes the recent pullback in the stock price. He sees 66 cents 2004 earnings per share, and 80 cents in 2005. He has a $30 target.