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Macdonald Dettwiler has become a “global commercial satellite powerhouse”, says Global Maxfin

Two recent contract wins reveal how strong the commercial market is for MacDonald Dettwiler (TSX:MDA), says Global Maxfin Capital analyst Ralph Garcea.

Yesterday, Macdonald Dettwiler and its subsidiary, Space Systems Loral announced that it had been selected to provide a communications satellite for Bulgaria Sat, an affiliate of Bulsatcom, a leading telecom company in Bulgaria. The same day, it was revelaed that Export Development Canada had completed a $250-million financing that would allow Spanish satellite operator Hispasat SA to purchase a new satellite from Macdonald Dettwiler.

“We selected SSL to manufacture our first satellite early on, based on its history of success and reliability,” said Bulgaria Sat CEO Maxim Zayakov. “SSL has been an excellent partner in helping us bring this project to fruition.”

Garcea says these announcements are a good indication of the strength of the commercial market for Macdonald Dettwiller and Space Systems Loral. He thinks MDA’s acquisition of SSL has transformed the company into a “global commercial satellite powerhouse”, and that it is now a leader in the growing communications industry. The analyst says he sees numerous catalysts for the B.C.-based company, including increased bidding activity, an expanding RADARSAT program, and additional synergies that have yet to be realized from the SSL acquisition.

In a research update to clients this morning, Garcea maintained his “Buy” rating on Macdonald Dettwiler, but raised his target price to to $105 from $96, implying a return of 25.5% at the time of publication.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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