Mercury Systems downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Ken Herbert downgraded Mercury Systems to Sector Perform from Outperform with a price target of $54, down from $66. Heading into 2023, the defense supply chain remains a risk for Mercury, one of the most impacted by the supply chain disruptions in the group, Herbert tells investors in a research note. The analyst now sees less upside opportunity in the company’s initial fiscal 2023 guidance, and views the implied acceleration in the second half of the year as a risk.