Mercury Systems upgraded to Outperform from Neutral at Baird

Baird upgraded Mercury Systems (MRCY) to Outperform from Neutral with a price target of $58, up from $37. The firm says its confidence has “materially improved” that Mercury’s “long-dated turnaround story has officially turned the corner” with the business inflecting and technical risks on challenged programs eliminated. The company reported better than expected fiscal Q2 results and with record free cash flow as unbilled receivables continues to decline, providing further confidence Mercury will be back towards its target business model exiting fiscal 2025, the analyst tells investors in a research note.