Bear Of The Day: Quality Systems, Inc. (QSII)Zacks Investmentupdated Jun 05, 2012TweetAt GET.com we maintain complete editorial integrity on our content & provide transparent & unbiased information. Companies don't pay us to include their products although we receive a compensation when you successfully apply to products from our partners. See how we make money here.At GET.com we maintain complete editorial integrity.We downgrade our rating on Quality Systems, Inc. (QSII) to Underperform with a target price of $27. The company reported earnings per share of $0.26 in fourth-quarter fiscal 2012, just missing the Zacks Consensus Estimate. Quality Systems offers an electronic health record (EHR) product and is benefiting from the migration of ambulatory and inpatient practices to EHR under the federal stimulus. Of late, however, growth of its pipeline metric has been on a falling trend along with progressively lower number of signed deals on a quarterly basis. The company has made multiple acquisitions to bolster organic growth. Its acquisitions are expected to facilitate its entry in the small hospital segment. We are concerned about execution risk emanating from Quality Systems entry into the rural inpatient market. Also, on the negative side, it competes in a fragmented market with larger competitors. The market is price sensitive and vulnerable to price cutting. QUALITY SYS (QSII): Free Stock Analysis Report To read this article on Zacks.com click here.Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.