Mercury Systems (NASDAQ:MRCY) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Mercury Systems (NASDAQ:MRCY) had its target price raised by Royal Bank Of Canada from $105.00 to $120.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an “outperform” rating on the technology company’s stock. Royal Bank Of Canada’s price objective indicates a potential upside of 19.71% from the company’s current price.

A number of other brokerages also recently weighed in on MRCY. Truist Financial upgraded Mercury Systems to a “strong-buy” rating in a report on Friday, May 1st. Robert W. Baird increased their target price on shares of Mercury Systems from $120.00 to $130.00 and gave the stock an “outperform” rating in a report on Wednesday. Zacks Research downgraded shares of Mercury Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. JPMorgan Chase & Co. lifted their price target on shares of Mercury Systems from $99.00 to $101.00 and gave the company a “neutral” rating in a report on Monday, July 13th. Finally, Canaccord Genuity Group boosted 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. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $106.80.

Mercury Systems Trading Down 4.5%

MRCY opened at $100.25 on Wednesday. The firm has a market capitalization of $6.02 billion, a P/E ratio of -416.52 and a beta of 0.95. The firm’s 50 day moving average is $108.73 and its 200-day moving average is $94.85. Mercury Systems has a 52-week low of $62.78 and a 52-week high of $128.45. The company has a quick ratio of 2.15, a current ratio of 3.19 and a debt-to-equity ratio of 0.40.

Mercury Systems (NASDAQ:MRCY) last released its quarterly earnings results on Tuesday, August 18th. The technology company reported $0.37 EPS for the quarter, missing the consensus estimate of $0.38 by ($0.01). The business had revenue of $289.78 million during the quarter, compared to analyst estimates of $266.09 million. Mercury Systems had a positive return on equity of 2.22% and a negative net margin of 1.46%.The company’s revenue was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.47 EPS. Analysts expect that Mercury Systems will post 0.33 EPS for the current fiscal year.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Mercury Systems

Institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Mercury Systems in the 2nd quarter worth about $1,146,342,000. State Street Corp boosted its stake in Mercury Systems by 12.1% during the 4th quarter. State Street Corp now owns 3,423,600 shares of the technology company’s stock valued at $249,957,000 after purchasing an additional 368,242 shares during the period. Invesco Ltd. boosted its stake in Mercury Systems by 25.1% during the 4th quarter. Invesco Ltd. now owns 1,910,742 shares of the technology company’s stock valued at $139,503,000 after purchasing an additional 383,299 shares during the period. T. Rowe Price Investment Management Inc. grew its position in Mercury Systems by 1.4% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,542,851 shares of the technology company’s stock worth $112,644,000 after purchasing an additional 21,182 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Mercury Systems by 3.6% in the 4th quarter. Geode Capital Management LLC now owns 1,368,659 shares of the technology company’s stock worth $99,940,000 after purchasing an additional 47,174 shares during the last quarter. Institutional investors own 95.99% of the company’s stock.

Key Stories Impacting Mercury Systems

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.

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.