In a report released yesterday, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on Quality Systems (NASDAQ: QSII), with a price target of $23. The company’s shares closed yesterday at $20.05, close to its 52-week high of $20.28.
Halper noted:
“. We reiterate our Overweight rating on QSII shares. We are raising our price target to $23 from $21. We recently hosted a day of investor meetings with management and came away believing that our estimates were probably too conservative. We have increased our medium-term top-line growth and margin assumptions in our DCF model. Furthermore, we have lowered our discount- rate assumption given the overall conservatism in the company’s four-year plan. Key assumptions include top-line growth in the high-single-digit rate (implying about $160 million of incremental revenue through F2022). The company should achieve operating synergies and expand its adjusted operating margin to about 20% in F2022.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 20.7% and a 72.4% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
Quality Systems has an analyst consensus of Moderate Buy, with a price target consensus of $20.
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Based on Quality Systems’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $11.05 million. In comparison, last year the company had a net profit of $4.42 million.
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Quality Systems, Inc. engages in the development and marketing of electronic health records, practice management, revenue cycle management, and interoperability solutions. It offers the core; automation and workflow; analytics, population health, and patient engagement, interoperability; managed services; professional services; and client service and support.
