JPMorgan upgraded its rating on aerospace and defense company Mercury Systems from neutral to overweight. The bank nevertheless cut its price target from $110 to $102, a level that implied about 22% upside. Mercury Systems beat earnings and revenue expectations in fiscal first-quarter results and raised its full-year adjusted EBITDA and revenue growth guidance. JPMorgan said strong bookings boosted the backlog, with demand diversified across missiles, radar and other electronic-warfare technologies. The company’s 35.2% gross margin was its highest since the second quarter of fiscal 2023, and JPMorgan believes the results indicate room for further improvement.
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