Mercury Systems down after CEO resigns; J.P. Morgan cuts rating

Mercury Systems

26/06/2023 13:29

** Technology company Mercury Systems Inc's  MRCY.O  shares
down 11.10% at $31.00 premarket
    ** Co after market on Friday announced the resignation of
CEO Mark Aslett  urn:newsml:reuters.com:*:nGNX92T3zt
    ** J.P. Morgan cuts MRCY to "Neutral" from "Overweight"
citing managerial changes and inability to find a buyer for sale
of the company
    ** JPM also cuts PT to $37 from $56; Revised PT reflects ~6%
upside on last close
    ** "..without a clearer sense of the path forward or the
outlook for sales, profitability, and cash flow, we are lowering
our rating to Neutral" - Brokerage
    ** Brokerage added Co's expansion through M&A "has struggled
with execution recently"
    ** Three of 9 brokerages rate the stock "buy" or higher, 6
"hold"; their median PT is $46 - Refinitiv
    ** Up to Friday's close, MRCY down 22.06% YTD

 (Reporting by Pritam Biswas in Bengaluru)
 ((Pritam.Biswas@thomsonreuters.com))