SunTrust Robinson Humphrey downgraded Digital Insight (DGIN) to neutral from buy, citing the stock's valuation.
Analyst Andrew Jeffrey says the stock price has had a run-up. (It current trades at around $32.53 and he had a $33 price target.) Jeffrey thinks there is insufficient upside to his 2006 and 2007 earnings estimates. He believes Digital Insight remains the leading provider of Internet-based services to community financial institutions, but he would likely review his rating if the stock price fell to the high $20s, a level at which he believes the stock would represent a relatively more attractive risk/reward proposition. He sees 88 cents 2008 earnings per share and $1.04 in 2006.