UBS Maintains a 'Neutral' on Quality Systems (QSII); Lowering Target Multiple

UBS maintains a 'Neutral' on Quality Systems (NASDAQ: QSII) price target lowered from $44 to $39.

UBS analyst says, "It appears the fallout from confusion caused on QSII’s F2Q conference call as well as recent rotation out of EHR-levered names has led Quality Systems’ shares to greatly underperform the market since October. As such we are taking this opportunity to bring our price target more inline with our expectations."

"At its investor day last month, QSII detailed a longer-term growth strategy relying partly on greater services offerings (including outsourced RCM, consulting, health services and int’l). In our view, these additional services as well as M&A, may put a lid on QSII’s best in class margin profile. As such, we continue to forecast limited margin expansion opportunities for QSII, resulting in our below consensus EPS estimates, especially in out years."

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

Shares of Quality Systems closed at $35.53 yesterday.

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