Markets & Finance

Baird Cuts Insight Enterprises to Neutral

Robert W. Baird downgraded Insight Enterprises (NSIT) to neutral from outperform, after the company posted quarterly results.

Analyst David Manthey notes factors such as a moderate demand environment, higher-than-expected selling, general, and administrative costs, and the increasing possibility of the company's missing its 4.0% non-Generally Accepted Accounting Principles EBIT margin target in the fourth quarter of 2006. Although he thinks Insight Enterprises remains a turnaround story, the next 6 to 12 months could be challenging. He expects the stock to perform in line with the market. He also cut his $1.56 2006 earnings per share (EPS) estimate to $1.34, his $1.88 2007 estimate to $1.52, and his $24 stock price target to $22.

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