Mercury Systems Stock Slips After Jefferies Downgrade

April 8, 2022 1:50 PM | 1 min read | Make a Comment

Jefferies analyst Sheila Kahyaoglu downgraded Mercury Systems Inc MRCY to Hold from Buy and raised the price target to $65 (an upside of 4.7%) from $62.
Kahyaoglu notes that the stock had increased 30% since the company released its Q2 earnings on February 1, owing to solid momentum in the Defense sector and three activist campaigns.
According to Kahyaoglu, Mercury faces fundamental near-to-medium-term headwinds and is likely to cut FY22 guidance and fiscal Q3 earnings due in early May.
Price Action: MRCY shares are trading lower by 4.32% at $62.07 on the last check Friday.