Needham & Company downgraded HealthStream (NASDAQ: HSTM) from Buy to Hold, saying conference call highlights additional revenue uncertainties.

Analyst Scott Berg commented, "We are downgrading from Buy to Hold as we believe HSTM is fairly valued at its current expected FY16 growth rate. Although we continue to like the longer-term story and historical execution, we believe the stock could be choppy in the short term given downside risks to FY16 estimates increased with earlier than expected ICD-10 customer loss in 2Q. While the company's 2Q call detailed a core business that remains strong, potential early ICD-10 customer loss, the continued lack of visibility of declining ICD-10 related revenues, and an underperforming Patient Experience segment give us less confidence that the company can drive meaningful upside to our current growth estimates to warrant further multiple expansion. HSTM currently trades at 3.6x FY16 revs, in line with like software companies' growth rates."

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Shares of HealthStream closed at $31.35 yesterday.