Internet banking company Digital Insight Corp. (Nasdaq: DGIN) rose 8 to 63 7/8 Monday after Robertson Stephens initiated coverage of the stock with a “buy” rating and a 12-month price target of $95.
“We base our target price on the assertion that the company’s shares will at least maintain their industry-leading valuation of 25.8 times projected 2000 revenues,” wrote analyst Andrew Jeffrey. “In our opinion, Digital Insight is among the Internet banking enablement industry leaders due to its deep market roots, superior technology and scalability, established service bureau-based operating model, high recurring revenue stream and market-leading end-user penetration rate.”
The company’s strategy of targeting “middle-market” companies and its cutting-edge technology are also positives, Jeffrey said.
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