
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated significant financial growth, as evidenced by a remarkable 1,091% year-over-year increase in EBITDA margins, reaching 13.1%, alongside a 356% surge in free cash flow to $119 million. The company reported a 31% year-over-year increase in sales of Modules and Sub-assembly products, totaling $246 million in FY25, supported by a robust 11% two-year compound annual growth rate (CAGR) in this product segment. Moreover, Mercury's ability to expand its presence in the defense electronics market through strategic inorganic growth initiatives has created opportunities for improved margins and sustained top-line 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% from Q3/23 to Q3/25, leading to a diminished book-to-bill ratio of 0.95x in Q3/25 and 1.10x on a trailing twelve-month (TTM) basis. The company's financial performance is further highlighted by its EBITDA multiple, which lags behind the SMID cap defense peer group average of 48.8x by 35.4%, standing at only 31.5x for FY26 consensus EBITDA. Additionally, certain product lines, specifically the SCAR and ADTS, have shown a reduced year-over-year revenue contribution, further contributing to the negative financial outlook.
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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