J.P. Morgan Analyst Upgrades Mercury Systems to Overweight

J.P. Morgan analyst Seth Seifman upgraded Mercury Systems, Inc. to Overweight from Neutral and set a $102 price target, citing strong bookings and renewed confidence in management.

Bookings rose 48% year over year to $370 million, while gross margin reached 35.2%, its highest level since the second quarter of 2023. Seifman called the margin recovery the quarter’s “most striking aspect.”

Management expects revenue to grow at a double-digit rate in fiscal 2027, with total revenue approaching $1.1 billion. Seifman also expects double-digit sales growth in the fiscal year, tying his view to strong bookings and renewed confidence in management. The upgrade followed Mercury’s fiscal first-quarter report.