UPDATE: RBC Capital Upgrades Mercury Systems (MRCY) to Outperform

RBC Capital analyst Ken Herbert upgraded Mercury Systems (NASDAQ: MRCY) from Sector Perform to Outperform with a price target of $72.00 (from $60.00).

The analyst comments "We are upgrading our rating of Mercury Systems (MRCY) to Outperform from Sector Perform and increasing our target price to $72. After the disappointing FY22, we believe the company is well positioned to return to at least MSD organic growth, execution (margins and FCF) improvement, and the activist presence provides a floor on the valuation, in our view. Defense spending and sentiment are also tailwinds for the stock, providing a strong backdrop for a positive re-rating. Our $72 PT (from $60) is based on 18x EV/EBITDA and 26x P/E multiples on our FY23 estimates."

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 $58.77 yesterday.

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