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.