
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. is experiencing a positive outlook driven by the anticipated improvement in follow-on order activity as backlog delivery progresses, positioning the company well for future growth. The recent financial performance showcases a robust EBITDA of $31.2 million and an impressive margin increase of 400 basis points year-over-year, significantly exceeding consensus expectations, indicating strong operational efficiency. Furthermore, the company has demonstrated a consistent annual top-line growth of 28% since FY16, supported by management's strategic focus on enhancing execution, addressing cost structures, and driving free cash flow generation, particularly with the transition of key programs to full-rate production in the near term.
Bears say
Mercury Systems Inc. has faced a decline in quarterly bookings, with a 3% year-over-year decrease in 4Q, indicating potential challenges in securing new contracts amidst a competitive landscape. The company's fiscal 4Q sales fell 2% year-over-year to $248.6 million, which, despite exceeding consensus expectations, reflects underlying growth concerns, particularly as FY25 guidance calls for flat revenue growth alongside low double-digit EBITDA margins. Additionally, management’s lack of detailed guidance on earnings per share (EPS) and contractual performance raises concerns about operational stability and future cash flow generation, contributing to a cautious outlook on the company’s financial trajectory.
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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