Shares of Tustin-based Quality Systems Inc. slumped 8% Wednesday after a Piper Jaffray analyst downgraded its shares.
Analyst Sean Weiland said the healthcare software maker faces increased competition and slower sales growth during the next few years. He said the company’s shares, which are up 191% this year, have already priced in future earnings gains.
Weiland dropped his rating on the company to “market perform” from “outperform.”
Quality, which makes software to help doctors and dentists manage their practices, earned $5.8 million in the third quarter, up 56% from last year. The company’s revenue jumped 39% to $29.5 million in the period.
Shares of the company closed at $81.12 on Wednesday.
