UPDATE: Jefferies Cuts Target to $16 on Mercury Computer Systems

Jefferies reiterates its Buy rating on Mercury Computer Systems

and lowered its price target to $16 from $20 as challenges in outlook offset strong quarter earnings. Jefferies says, "We are lowering our EPS for FY12 and FY13 to $0.60 and $0.67 from $0.75 and $1.00 due to program delays and somewhat faster runoff of the commercial business than we had expected. For FY12 and 13 respectively, Adjusted EBITDA is cut to $47.5 and $50 million from $50 and $58 million, respectively." MRCY closed at $14.98 a share on Tuesday.