Citigroup Reiterates Sell Rating, $26 PT for Quality Systems

In a company update published earlier today, Citigroup Inc. reiterated its Sell rating and $26.00 price target for Quality Systems, Inc.

. Citigroup went on to say “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. The trend in HCIT solution has been gravitating towards web-based delivery. Given our target price and our belief that consensus estimates could see further negative revisions, we rate QSII a Sell.” Quality Systems, Inc. closed yesterday at $30.01