RADA - RADA Electronic jumps in trade; price target lowered just after company withdrew FY22 guidance

• RADA Electronic Industries ( NASDAQ: RADA ) rallied 17% despite a lowered price target to $15 from $17 and maintaining its Buy rating on the shares at Canaccord .
• Analyst Austin Moeller noted the unexpected earnings pre-release , along with the recent merger announcement, have clearly not been well-received by the investor base and he said while he remains confident in the company's ability to book additional orders that have been delayed in the next several months, it is clear that investors must now begin thinking about RADA within the context of the combined Leonardo DRS company.
• The company lowered Q2 revenue guidance to be ~$22.5M compared to consensus of $36.09M and it withdrew FY22 guidance amid the merger talks.
• In past 1-month trading session, the company lost 25.7%; Quant rating stands at Hold for the stock.
• SA Contributor GI Research recently assigned a Buy rating and indicated that RADA is a emerging high growth defense stock and while analyzing the merger, Mare Evidence Lab said that RADA and Leonardo DRS make sense together.

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