
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated significant financial improvement, highlighted by a remarkable 1,091% year-over-year increase in EBITDA margins to 13.1% and a 356% increase in free cash flow (FCF) to $119 million. The company's topline growth has been notably driven by a 31% year-over-year rise in sales of Modules and Sub-assembly products, amounting to $246 million in FY25, complemented by a steady 11% two-year compound annual growth rate (CAGR) in this segment. Additionally, Mercury's expanding share-of-wallet in the defense electronics market, bolstered by strategic inorganic growth, presents opportunities for further margin expansion and revenue growth moving forward.
Bears say
Mercury Systems Inc. has experienced a significant decline in quarterly bookings, with a contraction of 9.6% CAGR projected to fall to approximately $200 million by Q3/25, adversely affecting its book-to-bill ratio which stood at 0.95x in Q3/25. Additionally, the company's EBITDA multiple of 31.5x for FY26 lags behind the SMID cap defense peer group's average of 48.8x by 35.4%, indicating a valuation disparity. Furthermore, revenue contributions from key product lines, specifically SCAR and ADTS, have also shown a decrease year-over-year, reflecting broader challenges in the company's financial performance.
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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