Street Calls of the Week
Mercury Systems Inc. (market cap: $4.65 billion) has reached a significant milestone as its stock hit a 52-week high, peaking at 78.88 USD. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, suggesting careful consideration for new positions. This marks a notable achievement for the defense electronics company, reflecting a strong upward trend over the past year. The stock’s impressive performance is underscored by a remarkable 106.24% increase in its value over the last 12 months, with year-to-date returns of 84.29%. This surge highlights investor confidence and positive market sentiment towards Mercury Systems, as the company continues to innovate and expand its footprint in the defense sector. The 52-week high serves as a testament to the company’s robust growth trajectory, supported by 9.19% revenue growth and a healthy current ratio of 3.52. InvestingPro subscribers have access to 14 additional investment tips and a comprehensive Pro Research Report, offering deeper insights into Mercury Systems’ valuation and growth prospects.
In other recent news, Mercury Systems has reported several significant developments. The company secured a $12.3 million contract to develop an avionics subsystem for a new U.S. military aircraft, marking a notable achievement in its defense sector engagements. Additionally, Mercury Systems has entered into a new production agreement with AeroVironment to support the U.S. Space Force’s Satellite Communication Augmentation Resource program, building on a prior contract for hardware production.
Analyst firms have also been active in updating their assessments of Mercury Systems. RBC Capital upgraded the company’s stock from Sector Perform to Outperform, raising the price target significantly to $90.00, citing its strong position in defense mission-critical processing systems. Meanwhile, Jefferies increased its price target to $75.00 from $50.00 but maintained a Hold rating, noting management’s conservative guidance for fiscal year 2026.
Conversely, Goldman Sachs reiterated its Sell rating with a $39.00 price target, following Mercury Systems’ fourth-quarter fiscal 2025 results. Despite this, the company reported adjusted EBITDA that exceeded consensus expectations and demonstrated sequential margin improvement. These developments reflect the varied perspectives among analysts regarding Mercury Systems’ future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.