Mercury Systems (MRCY, Financial) has entered into a significant strategic supply agreement with Cicor Group, marking a new chapter in their business relationship. As part of this agreement, Cicor Group will acquire Mercury's manufacturing operation located in Plan-Les-Ouates, Switzerland. This transition is expected to be finalized in about a month, contingent upon standard closing conditions, including obtaining consents from the end customers.
Following the acquisition, production will be relocated to Cicor's facilities in Newport, United Kingdom, and Bronschhofen, Switzerland, over the next 18 months. This strategic move is designed to enhance the operational efficiency of both parties. Mercury will continue to procure electronic boards from its U.S. operations as well as from Cicor, ensuring the stability and robustness of its supply chain.
The agreement reflects a mutual commitment from Mercury and Cicor to strengthen and expand their strategic partnership. This collaboration is expected to bolster Mercury's global manufacturing capabilities while providing Cicor with a solid platform for growth and expansion in the electronic products market.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Mercury Systems Inc (MRCY, Financial) is $48.00 with a high estimate of $58.00 and a low estimate of $30.00. The average target implies an upside of 1.78% from the current price of $47.16. More detailed estimate data can be found on the Mercury Systems Inc (MRCY) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Mercury Systems Inc's (MRCY, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Mercury Systems Inc (MRCY, Financial) in one year is $39.88, suggesting a downside of 15.44% from the current price of $47.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Mercury Systems Inc (MRCY) Summary page.
