Auriga Reiterates a 'Hold' on Quality Systems (QSII); Strong Finish to FY11, But Valuation Rich
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Price: $22.35 --0%
Rating Summary:
4 Buy, 15 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
Rating Summary:
4 Buy, 15 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
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Auriga reiterates a 'Hold' on Quality Systems (NASDAQ: QSII), PT increased from $73 to $81.
Auriga analyst said, "We are reiterating our rating on Quality Systems following record earnings to close out a strong fiscal year. Good results in virtually all business lines (ambulatory, inpatient and revenue cycle) drove the beat. Meanwhile, while we believe QSII is solidly positioned for the HITECH Act, we think that ultimately (perhaps FY13) growth will slow in the high-end of the ambulatory market where QSII plays, given our checks on market penetration. As such, we applaud QSII's expansion into new markets (e.g. revenue cycle and low-end inpatient) but recognize these are riskier endeavors if for no other reason the Company does not have the footprint and recognition that it has in the ambulatory EMR space. At current levels, valuation is still too rich for our taste."
"For FY12, we are increasing EPS estimates by $0.15 and revenue projections by $13MM, to $2.68 on $423MM, respectively."
For more ratings news on Quality Systems click here and for the rating history of Quality Systems click here.
Shares of Quality Systems closed at $87.28 yesterday.
Auriga analyst said, "We are reiterating our rating on Quality Systems following record earnings to close out a strong fiscal year. Good results in virtually all business lines (ambulatory, inpatient and revenue cycle) drove the beat. Meanwhile, while we believe QSII is solidly positioned for the HITECH Act, we think that ultimately (perhaps FY13) growth will slow in the high-end of the ambulatory market where QSII plays, given our checks on market penetration. As such, we applaud QSII's expansion into new markets (e.g. revenue cycle and low-end inpatient) but recognize these are riskier endeavors if for no other reason the Company does not have the footprint and recognition that it has in the ambulatory EMR space. At current levels, valuation is still too rich for our taste."
"For FY12, we are increasing EPS estimates by $0.15 and revenue projections by $13MM, to $2.68 on $423MM, respectively."
For more ratings news on Quality Systems click here and for the rating history of Quality Systems click here.
Shares of Quality Systems closed at $87.28 yesterday.
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