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The Channel Wire
April 21, 2008
Shares of Insight Enterprises fell nearly 8 percent Monday after an analyst downgraded its estimates for the direct marketer.

Raymond James & Associates lowered Insight's rating to Market Perform, from Strong Buy, because of uncertainties about corporate IT spending in North America, according to Brian Alexander, senior vice president of equity research, technology distribution. In addition, Alexander cites growing concerns about Microsoft licensing, issues with Insight's mySAP rollout and its acquisition of Cisco Systems solution provider Calence.

Shares were trading at $15.95, down $1.19, on Monday afternoon.

"We think there is a reasonable chance that the company's 2008 EPS guidance range of $1.80 to $1.95 comes down when it reports 1Q results on May 8, as it assumes at least mid-single digit revenue growth," Alexander wrote in a report. "Findings from our 1Q IT Demand survey suggest that sales through IT resellers are expected to grow just 2.6 percent year-over-year in 1Q."

Over the past six quarters, Insight has grown slower than Raymond James' industry forecast, Alexander wrote.

Posted by Scott Campbell at 12:18 PM
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