Noah Poponak, an analyst from Goldman Sachs, maintained the Hold rating on Mercury Systems (MRCY – Research Report). The associated price target is $37.00.
Noah Poponak has given his Hold rating to Mercury Systems due to a combination of factors. The company’s F1Q24 results were notably below consensus expectations, with a 20% decline in organic revenue. Even more concerning was the fact that this was 17% lower than consensus forecasts. Additionally, the company’s margins were considerably below expectations. Mercury Systems is currently grappling with underperforming programs that are negatively impacting its business, but the timeline for their improvement remains unclear.
In terms of key elements from the quarter, Mercury Systems reported an adjusted EPS of $(0.24), which is a stark contrast to the FactSet consensus of $0.18 and Noah’s estimate of $0.23. The company was also below both Noah’s and consensus’ estimates with regards to total revenue, adjusted EBITDA margin, and adjusted EBITDA. Despite these disappointing figures, the company reiterated its full-year guidance metrics, which would require a significant turnaround from recent trends. As a result of these factors, Noah has decided to maintain a neutral stance on Mercury Systems’ stock.
In another report released on November 7, Jefferies also maintained a Hold rating on the stock with a $40.00 price target.
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Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock.
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Mercury Systems (MRCY) Company Description:
Mercury Systems, Inc. engages in the provision of secure sensor and safety critical mission processing subsystems. It offer products under the following categories: Components, Modules and Sub-Assemblies, and Integrated Subsystems. The Components category refers to technology elements typically performing a single, discrete technological function, which when physically combined with other components may be used to create a module or sub-assembly. The Modules and Sub-Assemblies category includes combinations of multiple functional technology elements and components that work together to perform multiple functions, but are typically resident on or within a single board or housing. The Integrated Subsystems category covers multiple modules and sub-assemblies combined with a backplane or similar functional element and software to enable a solution. The company was founded on July 14, 1981 and is headquartered in Andover, MA.
Read More on MRCY:
- Mercury Systems stock takes a turn for worse, better days ahead, Barron’s says
- Mercury Systems sees FY24 adjusted EPS $1.19-$1.54, consensus $1.33
- Mercury Systems reports Q1 EPS (24c), consensus 18c
- Mercury Systems Reports First Quarter Fiscal 2024 Results
- Mercury Systems (MRCY) Q1 Earnings Cheat Sheet
