Mercury Computer Systems "market perform," target price raised

04/28/06 - Ryan, Beck & Co

NEW YORK, April 28 (newratings.com) - Analysts at Ryan Beck & Co maintain their "market perform" rating on Mercury Computer Systems (MRCY), while reducing their estimates for the company. The 12-month target price has been raised from $13 to $15.

In a research note published this morning, the analysts mention that the company has reported its EPS significantly short of and revenues ahead of the estimates. Mercury Computer Systems’ earnings growth and operating margins improvement are unlikely to recover in the near term, the analysts say. The EPS estimate for 2006 has been reduced from $0.30 to $0.08.