Mercury Systems price target raised to $49 from $43 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Mercury Systems (MRCY) to $49 from $43 and keeps a Sell rating on the shares. Mercury Systems delivered Q1 results above expectations and maintained full-year guidance for modest revenue growth, mid-teens EBITDA margins, and positive free cash flow, the analyst tells investors in a research note. While execution and operating consistency are improving, valuation remains demanding relative to the company’s mid-single-digit growth and margin outlook, limiting near-term upside potential, Goldman says.