Mercury Systems price target raised to $25 from $22 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Mercury Systems (MRCY) to $25 from $22 and keeps a Sell rating on the shares after its Q1 results. Given volatility in the defense spending outlook, continued progress to be made on challenged contracts, and a lack of GAAP profitability and consistent free cash flow, the risk/reward on the stock is skewed to the downside, the analyst tells investors in a research note.