SG Cowen downgraded Mercury Computer (MRCY) to neutral from buy.
Analyst Robert Stone says while Q4 results just beat estimates, the company's design win streak in defense continues, and its near-term prospects are hampered by push-outs. He expects tough fiscal 2002 EPS comparisions on weak defense shipments and flat medical sales.
Stone cut the $1.60 fiscal 2002 (June) EPS estimate to $1.14, and trimmed the $220 million fiscal 2002 revenue estimate to $190 million. Stone says the company still enjoys a strong market position in its core business segments, but he thinks poor visibility and the lack of earnings growth prompt a downgrade.