Ahead of the Bell: Quality Systems

An analyst said he expects shares of Quality Systems Inc. to make smaller gains, a day after the medical and dental software provider said its fiscal fourth-quarter income was in line with Wall Street Estimates.

Jefferies & Co. analyst Richard Close cut his target price to $39 from $45 and lowered his outlook in a note to investors early Wednesday. The Irvine, Calif., company's revenue came in below his estimates, he said, though it was able to bring in 70 new customers during the quarter.

He maintained his "Buy" rating on the company. The new price target implies an expected return of 12 percent from Tuesday's closing price of $34.76.

Late Tuesday, Quality Systems said its fourth-quarter income rose 32 percent to $11.3 million, or 41 cents per share, meeting estimates from analysts polled by Thomson Financial.

Separately, Stifel Nicolaus analyst Todd Weller called the quarter "not bad on the whole" and reiterated his "Buy" rating.

"We saw more positives than negatives in the quarter with solid new customer acquisitions and pipeline growth," he said in an analyst note.

He maintained his $42 price target, implying an expected gain of 21 percent.

Shares of Quality Systems have traded between $26.08 and $45.35 in the last 52 weeks.