Mercury Systems (NASDAQ:MRCY) Price Target Raised to $120.00

Key Points

• Royal Bank of Canada raised Mercury Systems’ price target to $120 from $105 and maintained an “outperform” rating, implying 19.71% upside from the previous close.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $106.80; Robert W. Baird separately lifted its target to $130.
• Mercury Systems’ latest revenue reached $289.78 million, up 6.1% year over year and above estimates, but EPS of $0.37 missed consensus by $0.01, while profitability and free cash flow declined.

Mercury Systems (NASDAQ:MRCY - Get Free Report) had its target price boosted by investment analysts at Royal Bank Of Canada from $105.00 to $120.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the technology company's stock. Royal Bank Of Canada's price objective suggests a potential upside of 19.71% from the stock's previous close.

A number of other equities analysts have also weighed in on the stock. Jefferies Financial Group restated a "hold" rating and set a $115.00 price target on shares of Mercury Systems in a research report on Friday, July 10th. Robert W. Baird boosted their target price on Mercury Systems from $120.00 to $130.00 and gave the stock an "outperform" rating in a report on Wednesday. Zacks Research lowered Mercury Systems from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft downgraded Mercury Systems to a "hold" rating in a research report on Wednesday, August 12th. Finally, Canaccord Genuity Group upped their target price on Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $106.80.

Mercury Systems Trading Down 4.5%

Mercury Systems stock opened at $100.25 on Wednesday. The firm has a market cap of $6.02 billion, a PE ratio of -416.52 and a beta of 0.95. Mercury Systems has a 12 month low of $62.78 and a 12 month high of $128.45. The stock's 50 day simple moving average is $108.73 and its two-hundred day simple moving average is $94.85. The company has a current ratio of 3.19, a quick ratio of 2.15 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY - Get Free Report) last posted its earnings results on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.01). The business had revenue of $289.78 million for the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a negative net margin of 1.46% and a positive return on equity of 2.22%. Mercury Systems's revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the business earned $0.47 earnings per share. Analysts anticipate that Mercury Systems will post 0.33 earnings per share for the current year.

Insider Transactions at Mercury Systems

In related news, Director Howard L. Lance sold 9,250 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $99.76, for a total value of $922,780.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. raised its holdings in Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock valued at $32,000 after buying an additional 208 shares during the period. Leonteq Securities AG purchased a new stake in Mercury Systems during the fourth quarter worth approximately $35,000. Hollencrest Capital Management purchased a new stake in Mercury Systems during the fourth quarter worth approximately $37,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Mercury Systems in the second quarter worth $43,000. Finally, Federated Hermes Inc. acquired a new stake in shares of Mercury Systems in the second quarter worth $43,000. 95.99% of the stock is currently owned by institutional investors and hedge funds.

Mercury Systems News Summary

Here are the key news stories impacting Mercury Systems this week:

• Positive Sentiment: Record fourth-quarter bookings rose 93.1% year over year to $660 million, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, up 38.4% to support expectations for continued growth. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Revenue reached a record $289.8 million, up 6.1% year over year and well above analyst expectations near $266 million. Analysts said the company’s outlook points to low-double-digit revenue growth.
• Positive Sentiment: Robert W. Baird raised its price target to $130 from $120 and assigned an “outperform” rating, while Piper Sandler reiterated “overweight” and lifted its target to $131 from $126. Analysts Raise Forecasts on Mercury Systems
• Neutral Sentiment: Fiscal 2026 revenue increased to $984 million from $912 million, but the company recorded a full-year GAAP loss of $29.7 million. Investors are weighing improving sales and demand against inconsistent earnings conversion.
• Negative Sentiment: Adjusted fourth-quarter EPS was $0.37, slightly below the $0.38 consensus and down from $0.47 a year earlier. GAAP EPS fell to $0.01 from $0.27, while adjusted EBITDA declined to $49 million from $51 million. Mercury Systems EPS Miss Overshadows Record Bookings
• Negative Sentiment: Fourth-quarter free cash flow decreased to $29 million from $34 million, adding to concerns about profitability and cash generation despite the robust backlog.
• Negative Sentiment: Reported insider activity showed sales and no open-market purchases during the past six months, which may reinforce cautious investor sentiment.

Mercury Systems Company Profile

Mercury Systems, Inc NASDAQ: MRCY is a technology company that designs, manufactures and markets secure processing subsystems for aerospace and defense applications. The company's products are built to address the stringent security, safety and reliability requirements of mission-critical programs, with a focus on radar, electronic warfare, intelligence and other sensor and processing functions. Mercury's offerings encompass rugged embedded computing modules, high-performance radio frequency (RF) and microwave components, digital signal processing subsystems and secure networking solutions.

Since its origins in advanced signal processing, Mercury Systems has expanded its capabilities through a combination of internal development and targeted acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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