
Mercury Systems (MRCY) Stock Forecast & Price Target
Mercury Systems (MRCY) Analyst Ratings
Bulls say
Mercury Systems Inc. has demonstrated substantial financial growth, with EBITDA margins increasing significantly by 1,091% year-over-year to reach 13.1%, and free cash flow rising by 356% year-over-year to $119 million. The company's topline growth is being driven by a notable 31% year-over-year increase in sales of Modules and Sub-assembly products, totaling $246 million for fiscal year 2025, supported by an 11% two-year compound annual growth rate in this segment. Additionally, Mercury's expanding share of the wallet in the defense electronics market indicates a strategic advantage that has resulted in both margin expansion opportunities and future revenue growth prospects.
Bears say
Mercury Systems Inc. has experienced a significant decline in quarterly bookings, contracting at a compound annual growth rate (CAGR) of 9.6%, leading to projected bookings of approximately $200 million by Q3/25, which negatively impacted the company's book-to-bill ratio. Additionally, Mercury's current valuation lags behind its small- to mid-cap defense peers, reflecting a 35.4% discount with a consensus EBITDA multiple of 31.5x for FY26 compared to the peer average of 48.8x. Furthermore, the company's revenue contribution from critical segments such as SCAR and ADTS has also declined year-over-year, adding to concerns about its overall financial performance and market positioning.
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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