Deutsche Bank Downgrades Computer Programs and Systems (CPSI) to Sell

Deutsche Bank downgraded Computer Programs and Systems (NASDAQ: CPSI) from Hold to Sell with a price target of $49.00.

"CPSI reported disappointing Q4 results and 2015 guidance that came as a negative surprise. CPSI delivered Q4 EPS of $0.60 (-33%) versus the Street's $0.87 and our $0.72. Revenue of $46.3mm fell 10%, and earnings quality was poor all the way down the income statement. 2015 EPS guidance of $2.62- $2.77 (-8% at midpoint) is a shock to the consensus of $3.34 and our $3.20. The guidance implies a rapid slow down in new sales and potentially client losses exceeding wins," said analyst George Hill.

"In another note today we highlighted CPSI’s poor customer satisfaction scores as reported by KLAS Research. CPSI has the lowest rated software suite as measured by KLAS, with its EMR score down 13% y/y. KLAS performance scores historically have been a leading indicator of market traction and sales growth, or potentially attrition in CPSI’s case. KLAS also highlighted CPSI’s share losses on its pre earnings call on January 12," he added.

For an analyst ratings summary and ratings history on Computer Programs and Systems click here. For more ratings news on Computer Programs and Systems click here.

Shares of Computer Programs and Systems closed at $58.94 yesterday.

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