Mercury Systems unlikely to see interest from U.S. Primes, says Jefferies

Jefferies analyst Sheila Kahyaoglu made no change to the firm’s Hold rating or $50 price target on Mercury Systems (MRCY) shares after the company’s board initiated a strategic review to enhance shareholder value. The U.S. Defense Primes are largely out as potential acquirers, given regulatory issues and general interest, though possible strategics could include BAE (BAESY), Curtiss-Wright (CW), among others, given complementary portfolios and less regulatory scrutiny, the analyst tells investors in a research note. Cobham, the only competing mid-tier radar electronics provider, is publicly interested, the firm notes.