Piper Sandler Reiterates "Overweight" Rating for Mercury Systems (NASDAQ:MRCY)

Key Points

• Piper Sandler reaffirmed its “Overweight” rating on Mercury Systems and raised its price target from $126 to $131, implying 24.76% upside from the prior close.
• Analyst sentiment remains broadly positive, with Mercury receiving a “Moderate Buy” consensus rating and an average price target of $105.30, despite some Hold and Sell ratings.
• Mercury’s latest quarter showed revenue of approximately $289.8 million, above expectations, but EPS of $0.37 missed consensus and declined year over year. Record bookings and backlog supported demand prospects, while weaker profitability and a full-year net loss remain concerns.

Mercury Systems (NASDAQ:MRCY - Get Free Report)'s stock had its "overweight" rating reaffirmed by research analysts at Piper Sandler in a research note issued on Wednesday, MarketBeat reports. They currently have a $131.00 price objective on the technology company's stock, up from their previous price objective of $126.00. Piper Sandler's target price points to a potential upside of 24.76% from the company's previous close.

A number of other research analysts also recently weighed in on the stock. Canaccord Genuity Group increased their price objective on shares of Mercury Systems from $102.00 to $106.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. The Goldman Sachs Group lifted their target price on shares of Mercury Systems from $60.00 to $68.00 and gave the stock a "sell" rating in a research report on Monday, May 11th. Robert W. Baird boosted their target price on shares of Mercury Systems from $120.00 to $130.00 and gave the company an "outperform" rating in a research note on Wednesday. Weiss Ratings reissued a "sell (d-)" rating on shares of Mercury Systems in a report on Friday, July 17th. Finally, Deutsche Bank Aktiengesellschaft downgraded Mercury Systems to a "hold" rating in a research note on Wednesday, August 12th. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Mercury Systems has an average rating of "Moderate Buy" and an average target price of $105.30.

Mercury Systems Price Performance

Shares of NASDAQ:MRCY opened at $105.00 on Wednesday. Mercury Systems has a fifty-two week low of $62.78 and a fifty-two week high of $128.45. The business has a 50-day simple moving average of $108.73 and a two-hundred day simple moving average of $94.85. The company has a debt-to-equity ratio of 0.40, a quick ratio of 2.15 and a current ratio of 3.19. The firm has a market cap of $6.30 billion, a price-to-earnings ratio of -437.50 and a beta of 0.95.

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

Insider Buying and Selling at Mercury Systems

In other news, Director Howard L. Lance sold 9,250 shares of Mercury Systems stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $99.76, for a total transaction of $922,780.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Mercury Systems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Osaic Holdings Inc. boosted its position in shares of Mercury Systems by 53.2% in the second quarter. Osaic Holdings Inc. now owns 599 shares of the technology company's stock worth $32,000 after purchasing an additional 208 shares during the period. Leonteq Securities AG bought a new stake in shares of Mercury Systems during the 4th quarter valued at $35,000. Hollencrest Capital Management purchased a new position in shares of Mercury Systems during the 4th quarter valued at $37,000. Public Employees Retirement System of Ohio purchased a new position in shares of Mercury Systems during the 2nd quarter valued at $43,000. Finally, Federated Hermes Inc. bought a new position in Mercury Systems in the 2nd quarter worth $43,000. Institutional investors own 95.99% of the company's stock.

Key Headlines Impacting Mercury Systems

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

• Positive Sentiment: Demand indicators were exceptionally strong. Fourth-quarter bookings reached a record $660 million, up 93.1% year over year, producing a 2.28 book-to-bill ratio. Backlog exceeded $1.9 billion, an increase of approximately 38.4%, supporting future revenue visibility. Mercury Systems Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Fourth-quarter revenue rose 6.1% to approximately $290 million, exceeding the roughly $266 million analyst estimate. Fiscal 2026 revenue increased to $984 million from $912 million, while the company indicated stronger organic growth expectations.
• Neutral Sentiment: Management reported fiscal 2026 adjusted EBITDA of $49 million for the quarter, a 16.7% margin, and $29 million of quarterly free cash flow. However, full-year operating and free cash flow were below fiscal 2025 levels, tempering the benefit of the strong order pipeline. Mercury Systems Q4 2026 Earnings Call Transcript
• Negative Sentiment: Profitability disappointed investors. Adjusted EPS was $0.37, below the $0.38 consensus cited by some data providers and down from $0.47 a year earlier. GAAP EPS fell to approximately $0.01 from $0.27, and fiscal 2026 ended with a $29.7 million GAAP net loss. The weaker earnings quality and lower cash generation appear to have driven the selloff despite record bookings. Mercury Systems drops as Q4 EPS miss overshadows record bookings

About Mercury Systems

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.

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