Frequency Electronics downgraded to Hold from Buy at Freedom Capital

Freedom Capital downgraded Frequency Electronics (FEIM) to Hold from Buy with a price target of $42, up from $33. Frequency Electronics reported Q2 results slightly below expectations and last year’s profitability, but showed signs of business recovery and strengthening in the non-space defense segment, the analyst tells investors in a research note. Growth in the order backlog and a revenue shift toward land-based defense programs help offset temporary satellite business weakness, laying a foundation for further growth, the firm argues.