
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc has reported a remarkable 1,091% year-over-year increase in EBITDA margins, reaching 13.1%, alongside a substantial 356% year-over-year growth in free cash flow (FCF) to $119 million. The company's topline growth has been fueled by a significant 31% year-over-year increase in the sale of Modules and Sub-assembly products, totaling $246 million in fiscal year 2025, with this segment experiencing an 11% compound annual growth rate (CAGR) over the past two years. Additionally, Mercury's expanding presence in the defense electronics market, facilitated through inorganic growth strategies, presents opportunities for further margin expansion and revenue growth, strengthening the company's overall financial health.
Bears say
Mercury Systems Inc. has experienced a significant decline in quarterly bookings, which have contracted at a compound annual growth rate (CAGR) of 9.6% over a two-year span, leading to a projected revenue of approximately $200 million in Q3/25. This slowdown has adversely affected the company’s book-to-bill ratio, which stands at 0.95x for the latest quarter and averages 1.10x on a trailing twelve-month (TTM) basis, indicating that new orders are not keeping pace with revenue. Furthermore, the company’s valuation is lagging behind its small to mid-cap defense peers, trading at 31.5x FY26 consensus EBITDA, which is 35.4% lower than the peer group multiple of 48.8x, highlighting a lack of investor confidence in its growth prospects.
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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