Mercury Systems price target raised to $55 from $50 at RBC Capital

RBC Capital raised the firm’s price target on Mercury Systems (MRCY) to $55 from $50 and keeps a Sector Perform rating on the shares as part of a broader research note offering a positive outlook for “small cap defense tech” names. The sector is poised for continued outperformance, driven by the growth in FY26 defense spending, idiosyncratic positioning in growth markets – including space, missiles, missile defense, hypersonics, unmanned, and AI – as well as some company specific valuation mismatches, the analyst tells investors in a research note.