Lake Street Capital Markets downgraded Streamline Health Solutions (NASDAQ: STRM) from Buy to Hold with a price target of $4.00 (from $6.00). The change follows Q1 results. Analyst Bruce D. Jackson said the stock is "essentially dead money until the management team shows they can deliver the goods."

"Streamline Health reported disappointing FQ1 revenue that was below expectations as the turnaround once again failed to materialize during the quarter," said Jackson.

"We are not taking up our forward F2015 revenue estimates to offset FQ1, which brings our annual revenue estimate to $28.4 million. We are also lowering our price target to $4 from $6 based on the company’s inability to execute on its guidance. The new price target is based on a 2.5x multiple to the NTM revenue estimate, which is consistent with the comp group averages. The stock could regain its previous 3x-4x multiple if the company can manage to string together a few quarters of consistent revenue growth. Investors can afford to wait one more quarter for verification that the commercial operations plan is working before getting more constructive on the stock," added the analyst.

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Shares of Streamline Health Solutions closed at $2.46 yesterday.