UPDATE: Piper Jaffray Raises Computer Programs and Systems' PT

According to a research report published this morning, Piper Jaffray has increased Computer Programs and Systems' CPSI PT from $54 to $62. In the report, Piper Jaffray said, "The company reported revenue slightly above estimates but EPS came in a nickel below consensus mainly due to higher SaaS installs in the quarter. About $5m worth of system sales were in SaaS model, which the company expects to be recognizable in 2H'12. Although the company gave encouraging strength in new installs for Q2 and reiterated CY12 guidance, we are slightly worried about the additional risk with increasing SaaS mix. About 60% of the new deals are in convertible SaaS deals, which should ideally convert to license revenues once the customer successfully receives stimulus incentives but given the typical financial weakness of such customers makes us worry about the conversion ratio." Piper Jaffray maintains its Neutral rating on Computer Programs and Systems, which is currently trading at $57.71.