UPDATE: Citi Downgrades Quality Systems; Lowers PT

According to a research report published this morning, Citi has downgraded Quality Systems QSII from Neutral to Sell, and lowered PT from $45 to $26. In the report, Citi said, "Preannouncement aside, we are concerned about NextGen's deteriorating satisfaction scores as reported by KLAS and saturation in QSII's core end market. NextGen's core EMR offering is below average and falling further behind, doubling the gap within the last 12 months. NextGen's EPM offering, while above average, is declining at a greater rate than average and essentially now near average. Further, we believe QSII's NextGen offerings do not have enough exposure to the most attractive end-markets: hospitals and small physician practices that should remain the fastest growing off a small base." Quality Systems closed yesterday at $29.90.