Mercury Systems price target lowered to $35 from $40 at RBC Capital

RBC Capital analyst Ken Herbert lowered the firm’s price target on Mercury Systems to $35 from $40 and keeps a Sector Perform rating on the shares. The analyst is citing the company’s “significant” Q4 earnings miss and lowered expectations that have raised “execution questions”. While RBC is positive on the management’s greater transparency, investors will remain cautious pending better visibility on the margin and free cash flow improvement, the firm tells investors in a research note.