Market Overview

Sterne Agee Comments on Mercury Systems Sale

Related BA
The Boeing Company Faces a Future Without Its Fighter Jets--So What?
The Success of India's Mars Mission Could Drive U.S. Space Program To Lower-Cost Solutions
FAA Orders Airlines to Replace Thousands of Boeing Cockpit Displays (Fox Business)

On Thursday, Reuters reported that The Boeing Company (NYSE: BA) is considering purchasing Mercury Systems, Inc. (NASDAQ: MRCY)

Mercury Systems is seeking around $500 million and hired Evercore Partners for the sale, according to Reuters report.

In a report published Friday, Sterne Agee analyst Peter Arment commented that a strategic company is likely to pay in the mid-teens EBITDA for Mercury systems. Mercury is trading at over 18x FY15E EV/ EBITDA at current prices, which implies a takeout range of between $15.00 and $19.00 per share.

Mercury Systems closed at $13.80 on Friday, up over 3.06 percent.

Latest Ratings for BA

DateFirmActionFromTo
Sep 2014BarclaysMaintainsOverweight
Sep 2014BarclaysMaintainsOverweight
Sep 2014Buckingham ResearchDowngradesNeutralUnderperform

View More Analyst Ratings for BA
View the Latest Analyst Ratings

Posted-In: Peter Arment Reuters Sterne AgeeAnalyst Color Analyst Ratings Media

 

Related Articles (MRCY + BA)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters