UPDATE: Deutsche Bank Initiates Coverage on Quality Systems with Sell Rating, $17.50 PT on Multiple Challenges Ahead

In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on

with a Sell rating and $17.50 price target. In the report, Deutsche Bank noted, “We are initiating coverage of Quality Systems with a Sell rating. We are concerned about the ability of the company to reverse the decline in software license sales or offset the decline with more subscription revenue as the physician group EMR market reaches saturation levels. Quality Systems positioning in the large physician market leaves the company vulnerable to acquisitions of its customer base by large integrated hospital systems. We also do not see Quality Systems as well positioned for population health management from a product or customer base standpoint. We see other EMR system vendors as leading Quality Systems in addressing the PHM market through current product offerings, R&D investments, and acquisitions.” Quality Systems closed on Wednesday at $22.60.