QSII May Post In-Line Q4 Results
Analysts at Auriga reiterate their "buy" rating on Quality Systems (NASDAQ: QSII). The target price for QSII is set to $70.
QSII is set to post its Q4 results on May 28, before the opening bell. The analysts are looking for “in-line quarter and bullish commentary regarding pipeline and stimulus expectations.” According to Auriga, “In the absence of what we expect to be material upside this quarter, and our view that consensus estimates still have room to come down, we would not rush to buy the stock into earnings, but would be aggressive on any pullbacks.”
“We find that physician practices increasingly prefer vendors that have a solid revenue cycle component in addition to a clinical EMR. As such, the 2008 acquisitions of two revenue cycle companies HSI and PMP have enhanced QSII’s competitiveness,” the analysts add.
Auriga has lowered its EPS estimates for FY11 from $2.33 to $2.25 on belief that its “margin expansion assumptions were slightly aggressive for FY11”
