
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated impressive financial growth, with EBITDA margins increasing significantly by 1,091% year-over-year to reach 13.1% and free cash flow surging 356% year-over-year to $119 million. The company has also reported a substantial 31% year-over-year increase in revenue from its Modules and Sub-assembly products, totaling $246 million in FY25, supported by an 11% compound annual growth rate over the past two years in this product segment. Additionally, Mercury's expanding share-of-wallet in the defense electronics market presents further opportunities for margin expansion and topline growth, attributed to its strategic inorganic growth initiatives.
Bears say
Mercury Systems Inc. has experienced a significant decline in quarterly bookings, with a compound annual growth rate (CAGR) of -9.6% anticipated over two years, leading to a projected total of approximately $200 million in Q3/25. This downturn has adversely affected the company's book-to-bill ratio, which stood at 0.95x in Q3/25, indicating more orders were fulfilled than received during that period. Additionally, Mercury Systems is underperforming in terms of valuation, trailing behind its SMID cap defense peer group by 35.4%, with a consensus EBITDA multiple of 31.5x compared to the peer group average of 48.8x.
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
Start investing in Mercury Systems (MRCY)
Order type
Buy in
Order amount
Est. shares
0 shares