Mercury Systems: Lack Of Margin Of Safety Makes Me Stay Neutral

Core Viewpoint - The turnaround of Mercury Systems is gaining traction with improving execution, record backlog, and strong exposure to a multi-year defense spending upcycle, but the current valuation leaves little room for error [1]. Group 1: Company Performance - Mercury Systems is experiencing a turnaround with improving execution and a record backlog [1]. - The company has strong exposure to a multi-year defense spending upcycle, which is expected to benefit its growth [1]. Group 2: Valuation Concerns - The current valuation of Mercury Systems is seen as leaving little room for error, indicating potential risks if performance does not meet expectations [1]. - Consensus among analysts suggests that the stock may already be priced for significant growth, which could limit upside potential [1].