Raymond James Starts Mercury Systems (MRCY) at Outperform

Raymond James analyst Brian Gesuale initiates coverage on Mercury Systems (NASDAQ: MRCY) with a Outperform rating and a price target of $55.00.

The analyst commented, "Mercury is the leading platform-agnostic provider of trusted computing and processing solutions used in national defense/aviation systems. Heightened geopolitical instability and rising near peer threats is driving robust defense budget growth, which should gradually accelerate Mercury’s organic growth. Additionally, Mercury is a pure play on the following defense themes: 1) increasing urgency for trusted computing, supply chain integrity, and rising importance of microelectronics for defense applications, 2) expanding electronic content on defense platforms, and 3) greater outsourcing from Tier 1 primes to Tier 2 contractors such as Mercury. These favorable secular themes, coupled with a de-risked valuation, achievable consensus estimates, and growing TAM serve as the foundation of our Outperform rating and 12-month price target of $55.00."

For an analyst ratings summary and ratings history on Mercury Systems click here. For more ratings news on Mercury Systems click here.

Shares of Mercury Systems closed at $48.03 yesterday.

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