
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated a significant improvement in its financial performance, highlighted by a remarkable 1,091% year-over-year increase in EBITDA margins to 13.1% and a 356% year-over-year rise in free cash flow to $119 million. The company's topline growth is primarily attributed to a nearly 31% year-over-year boost in the sale of Modules and Sub-assembly products, reaching $246 million in FY25, supported by an 11% two-year compound annual growth rate in this product segment. Furthermore, Mercury's strategic enhancements in its defense electronics market share, alongside operational optimizations, have fostered further opportunities for margin expansion and overall revenue growth.
Bears say
Mercury Systems Inc has experienced a significant decline in quarterly bookings, contracting at a compound annual growth rate (CAGR) of 9.6%, with levels reaching approximately $200 million in Q3/25, adversely affecting its book-to-bill (B2B) ratio, which stood at 0.95x for that quarter. The company's EBITDA multiple is lagging behind its small and mid-cap defense peer group by 35.4%, currently reported at 31.5x for FY26 compared to the peer average of 48.8x. Additionally, the revenue contributions from key segments, such as SCAR and ADTS, have shown a year-over-year decline, further emphasizing the challenges facing the company.
This aggregate rating is based on analysts' research of Mercury Systems and is not a guaranteed prediction by Public.com or investment advice.
Mercury Systems (MRCY) Analyst Forecast & Price Prediction
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