UPDATE: Morgan Stanley Downgrades Quality Systems to Underweight on Growth Uncertainty

Morgan Stanley downgraded its rating on Quality Systems

from Equal-weight to Underweight and removed its previous $17 price target. Morgan Stanley said, "ack of visibility to revenue growth, recent management departure, and uncertainty around ambulatory end market opportunity should cap QSII's multiple in the near-term in our view. …QSII's guidance retraction and recent NextGen president departure add to the uncertainty around management's ability to reaccelerate revenue growth. … We believe QSII will underperform our HCIT as well as our broader healthcare service coverage universe due to its positioning relative to industry and what we view as unfavorable end customer trends." Quality Systems closed at $18.53 on Friday.