UPDATE: Sterne Agee Downgrades Mercury Computer Systems to Neutral

In a report published Friday, Sterne Agee Group downgraded its rating on Mercury Computer Systems

from Buy to Neutral. Sterne Agee noted, “We are downgrading MRCY to Neutral from Buy. Last night MRCY preannounced 1Q13 results reflecting order delays from SEWIP as well as charges related to restructuring. Given the uncertainty around sequestration and defense funding flows we are less confident in MRCY's ability to navigate these issues in the near term. With major programs like JCREW and now SEWIP under pressure we see limited upside from current levels.” Mercury Computer Systems closed on Thursday at $9.64.