Canaccord Genuity analyst Austin Moeller has maintained their bullish stance on MRCY stock, giving a Buy rating on November 5.
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Austin Moeller has given his Buy rating due to a combination of factors that highlight Mercury Systems’ strong financial performance and strategic positioning. The company reported impressive Q1/26 results, with revenues and adjusted EBITDA significantly surpassing consensus expectations, driven by proactive customer servicing and accelerated deliveries. This demonstrates Mercury’s agility in meeting high-priority production demands, which is a positive indicator for future growth.
Additionally, Mercury Systems has a robust backlog, with a substantial portion expected to convert into revenue within the next twelve months. The company’s ability to secure new design programs and competitive wins, along with follow-on production awards, underscores its competitive edge in the aerospace and defense sector. Despite a sequential decline in bookings, the year-over-year stability and record-high backlog provide confidence in continued growth. Management’s strategic focus on aligning production capabilities with demand and the upcoming expansion of production capacity further support the Buy rating, with expectations for improved margins and financial performance in the latter half of FY26.
In another report released on November 5, Truist Financial also maintained a Buy rating on the stock with a $100.00 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.