Insight Enterprises upgraded to “outperform” - update

02/06/04 - Robert W. Baird

NEW YORK, February 6 (New Ratings) – Analysts at Robert W Baird upgrade Insight Enterprises Inc (NSIT) from “neutral” to “outperform,” while raising their estimates for the company. The target price has been raised from $21 to $26.

Shares of Insight Enterprises, a direct marketer of computers, software and accessories, are currently trading at $21.57.

According to Robert W Baird's research note published this morning, Insight Enterprises' Q4:03 earnings and revenues were ahead of the estimates and the consensus. Better sales and gross margins, combined with lower SG&A expenses, boosted the company’s earnings in Q4, the analysts say. The visibility into the company’s 2004 earnings is likely to be high, the analysts add.

The analysts believe that the company's stock possesses low downside risk, as compared to that of its peers. The analysts also mention that the company's shares are attractively valued. According to Robert W Baird, Insight Enterprises’ stock is expected to outperform its peers in the forthcoming six-to-twelve months.

The EPS estimates for 2004 and 2005 have been raised from $1.05 to $1.18 and from $1.30 to $1.35, respectively. The P/E estimates for 2004 and 2005 are 18.3x and 16.0x, respectively.

Robert W Baird upgrades Insight Enterprises Inc from “neutral” to “outperform.”