William Blair analyst Jonathan Ho has maintained their bullish stance on MRCY stock, giving a Buy rating on November 3.
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Jonathan Ho has given his Buy rating due to a combination of factors that highlight Mercury Systems’ strong financial performance and strategic initiatives. The company reported impressive quarterly results, with bookings reaching $250 million and revenue growing by 10.2% to $225.2 million, surpassing expectations by $19.3 million. This growth was significantly driven by accelerated deliveries, which also contributed to a notable increase in pro forma EPS, exceeding consensus by $0.17.
Moreover, Mercury Systems demonstrated robust operational efficiency, as evidenced by a strong book-to-bill ratio of 1.11 and a substantial backlog of $815.6 million for the next 12 months. The company’s strategic focus on automation and capacity expansion in its Phoenix facility, along with site consolidation efforts, are expected to enhance future profitability. Despite some uncertainties in supply chain and customer timing, Mercury’s prudent approach and control over net adverse EACs position it well for continued strong performance in upcoming quarters.
In another report released on November 3, RBC Capital also maintained a Buy rating on the stock with a $90.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRCY in relation to earlier this year.