Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Piper Jaffray Cuts Quality Systems to Mkt Perform


Piper Jaffray downgraded Quality Systems (QSII) to market perform from outperform, explaining that the stock price is overvalued and the software company won't be able to keep up its previous pace of growth.

Quality Systems, a subsidiary of NextGen Healthcare Information Systems, sells software that helps medical and dental groups automate their administration.

Analyst Sean Wieland says the company is trading at 40 times his calendar year 2006 earnings per share estimate, a 44% premium to its peer group. Given the analyst's current assumptions, he sees tough comparables ahead as Quality Systems' earnings per share have been growing at an average of 51% year over year for the past two years, which he sees decelerating over the next two years to the 30% level. He also notes that competition may increase in the company's market. To maintain growth, he believes Quality Systems would have to aggressively grow its sales force, which history suggests impacts near term earnings per share.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus