- Seeing limited upside for the stock after the lowered full-year guidance, Canaccord Genuity downgrades Mercury Systems (NASDAQ:MRCY) from Buy to Hold and lowers the price target from $94 to $74.
- Analyst Ken Herbert: "While we can appreciate FY21 has been impacted by several one-time items and events, we believe the lower growth outlook for FY22- FY23 and greater investor concern on the overall level of DoD funding will limit near-term upside on the stock."
- Herbert notes that Mercury management said the five-year outlook remains intact, but "investor confidence in the top-line outlook will be impacted by the recent program delays and budget risk."
- Mercury shares are currently down 17.5% to $57.93.
- Background: Mercury Systems plunges after cutting full-year forecast