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  "documentTitle": "Mercury Systems Inc. (MRCY)",
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  "authorName": "Mercury Systems Inc.",
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  "presentationDate": "2018-10-17 00:00:00",
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      "text": "We believe owning Mercury at the current price is a terrible risk/reward proposition. The average analyst price target of ~$56/share implies just 9.5% upside, when not a single analyst is questioning the implications of replacing a key technology partner. We believe Mercury remains the most expensive stock in the A&D sector with 50%-60% downside risk.",
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      "text": "Red Flags From Mercury's SEC Filings",
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      "text": "Potential Long-Term Cybersecurity Implications",
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      "text": "Potential Near-Term Supermicro Implications",
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      "text": "downside risk: 50%-60%",
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      "text": "Mercury's stock has risen in recent months due to increased government defense spending and the accelerated speed with which contracts are being awarded. The Themis/Germane acquisitions appeared to position Mercury to benefit from $100m of additional revenue (~16% of FY 2019E revenue). However, the Street is ignoring a host of fundamental red flags in Mercury's filings, near-term tail risks stemming from its relationship with Supermicro, and the longer-term implications of rising cybersecurity costs.",
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