The analyst sees roughly 15% upside from the stock's $109.15 price. Piper Sandler initiated coverage of Mercury Systems, saying recent business momentum supports further organic growth despite the stock's roughly 200% gain over the past two years. The brokerage expects rising production volumes, development programs moving into production and wider adoption of Mercury's processing platform to support growth. Production programs carry margins about 1,000 basis points higher than development work, creating scope for further profitability gains as volumes rise. Related articlesPiper initiates Mercury Systems at overweight, sees upside from defense autonomyCiti pushes back Fed rate cuts to May after blowout January jobs reportThese 2 stocks are best positioned to benefit from higher uranium prices: analyst