William Blair Reiterates Outperform On Mercury Computer Systems Following Investors Meeting
In a research report issued today, William Blair analyst Jonathan Ho reiterated an Outperform rating on Mercury Computer Systems (NASDAQ:MRCY), following a tour at MRCY’s AMC facility with investors and meeting with the CEO, Mark Aslett, and recently appointed CFO, Gerald Haines, and other managers of the RF/Microwave unit and the AMC facility. No price target provided.
Ho noted, “We came away incrementally positive on Mercury’s growth prospects and a better understanding of why the AMC is core part of the company’s growth opportunity. In our view, investors have not yet come to fully appreciate how important a role the AMC will play in realizing the company’s long term strategic vision of becoming an end-to-end preferred sensor processing chain outsourcing partner to the defense primes.”
The analyst added, “We believe Mercury is past the transition phase of its business and should start to benefit from investments made in improving the operating model and leveraging the advantages the AMC offers. In our view, the company should see a pickup in activity from new contracts, such as the recently awarded $147.5 million Lockheed contract for SEWIP Block 2 LRIP.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Ho has a total average return of 2.6% and a 58.3% success rate. Ho is ranked #1851 out of 3284 analysts.