J.P. Morgan Reiterates Underweight Rating, $18 PT on Quality Systems

In a report published Wednesday, J.P. Morgan & Co. reiterated its Underweight rating and $18.00 price target on Quality Systems

. J.P. Morgan noted, “We initiated coverage earlier this month on Quality Systems with an Underweight rating given recent weak business trends driven by declines in core system sales. For F3Q13 we believe both the NextGen sales pipeline and actual software revenues will continue to decline. That said, although we have no data points to indicate reacceleration in growth, F3Q13 results could offer a potential turning point for QSII should sales metrics recover and/or management provide an updated outlook for a solid strategy for growth going forward. Separately, the sudden departure of a director who had recently returned to QSII adds to our concerns regarding the impact on operations from management disruption.” Quality Systems closed on Tuesday at $19.28.