William Blair analyst Jonathan Ho has maintained their bullish stance on MRCY stock, giving a Buy rating today.
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Jonathan Ho has given his Buy rating due to a combination of factors including Mercury’s ability to outpace expectations with $288 million in bookings and $233 million in revenue, bolstered by $30 million of accelerated deliveries that showcased strong demand. The company also delivered pro forma EPS meaningfully above consensus, underscoring solid execution even while navigating the near-term mix shift toward lower-margin backlog.
He highlighted that Mercury is methodically swapping out low-margin programs for higher-margin opportunities, building a $807 million next-12-months backlog with a 1.23 book-to-bill that supports visibility into fiscal 2026. Management’s focus on working capital discipline, supply chain efficiency, and facility consolidation suggests margin leverage should emerge as operations ramp, positioning fiscal 2027 for renewed growth and improving profitability despite conservative near-term guidance.
In another report released today, TipRanks – Google also reiterated a Buy rating on the stock with a $104.00 price target.