
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated impressive financial metrics, with EBITDA margins surging by 1,091% year-over-year to 13.1% and free cash flow increasing by 356% year-over-year to $119 million. The company's significant topline growth is driven by a 31% year-over-year increase in the sale of Modules and Sub-assembly products, amounting to $246 million in FY25, reflecting a steady 11% two-year compound annual growth rate. Additionally, Mercury's expanding market presence in the defense electronics sector, bolstered by strategic inorganic growth, has created opportunities for further margin expansion and revenue growth.
Bears say
Mercury Systems Inc has experienced a significant decline in quarterly bookings, contracting at a compounded annual growth rate (CAGR) of 9.6% from Q3/23 to Q3/25, leading to a reduced expectation of approximately $200 million in Q3/25. This decline adversely affected the company's book-to-bill (B2B) ratio, which stood at 0.95x in Q3/25 compared to a trailing twelve-month (TTM) ratio of 1.10x, signaling a potential shortfall in future revenue generation. Additionally, the company is underperforming relative to its SMID cap defense peers, with a valuation of 31.5x FY26 consensus EBITDA that lags the peer group's multiple of 48.8x by 35.4%.
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
Start investing in Mercury Systems (MRCY)
Order type
Buy in
Order amount
Est. shares
0 shares