Deutsche Bank Downgrades Computer Programs and Systems (CPSI) to Sell

August 5, 2016 7:25 AM EDT
Get Alerts CPSI Hot Sheet
Price: $22.70 -1.52%

Rating Summary:
    10 Buy, 15 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Computer Programs and Systems (NASDAQ: CPSI) from Hold to Sell with a price target of $22.00 (from $47.00). The change follows disappointing Q2 results.

"CPSI reported Q2 results well below expectations, with the miss largely driven by the legacy CPSI business and particularly add-on sales to existing customers. Revenue of $68.4mm was below consensus for $74.4mm, and adjusted EPS of $0.48 (-25%) was far below consensus for $0.79 and our $0.72 estimate. CPSI also pulled its revenue and EPS guidance because of the volatility of revenue from varying sales mix between different revenue models, and has cut the dividend payment. We believe current Street estimates for revenue and EPS are unlikely to be achieved and are downgrading shares of CPSI to Sell as we expect lower EPS and a lower multiple on CPSI shares," said analyst George Hill.

For an analyst ratings summary and ratings history on Computer Programs and Systems click here. For more ratings news on Computer Programs and Systems click here.

Shares of Computer Programs and Systems closed at $39.10 yesterday.

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