Positive Outlook for Mercury Systems Amid Business Turnaround and Strong Q2 Results

Mercury Systems (MRCY – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Peter Arment from Robert W. Baird upgraded the rating on the stock to a Buy and gave it a $58.00 price target.

Peter Arment has given his Buy rating due to a combination of factors that suggest a positive trajectory for Mercury Systems. The company has successfully navigated technical risks in its previously challenged programs and has shown significant improvement in its business performance. This is reflected in Mercury Systems’ better-than-expected second-quarter results for 2025, which included a substantial increase in sales and a return to positive free cash flow, both of which exceeded market expectations.
Furthermore, Mercury Systems has demonstrated progress in key financial metrics, such as a decline in unbilled receivables and a record backlog, indicating strong future earnings potential. The company’s management has also raised its outlook for fiscal year 2025, expecting moderate sales growth and improved execution, which adds to the confidence in its turnaround. With these improvements, Peter Arment has set a price target of $58, believing the stock has healthy upside potential as it moves towards normalized valuation levels.

Arment covers the Industrials sector, focusing on stocks such as Kratos Defense, Mercury Systems, and Triumph Group. According to TipRanks, Arment has an average return of 14.6% and a 64.27% success rate on recommended stocks.