Aristotle Small Cap Equity Fund reiterated its position in Mercury Systems (MRCY) in its Q2 2026 investor letter, believing the company is entering a new growth phase.
The fund noted that Mercury Systems (MRCY) is recovering from years of operational adjustments, making progress in accelerating defense program deliveries, implementing restructuring plans, and cutting costs, leading to improved execution, expanding margins, and reduced leverage. The fund believes that MRCY stock is attractively valued relative to its normal earning power, given the strong demand in the aerospace and defense end markets. Mercury Systems (MRCY), which specializes in developing advanced computing, signal processing, and electronic systems for defense and aerospace applications, closed at $101.25 on August 19.
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