All posts

MDA is undervalued, RBC says

RBC Capital Markets analyst Ken Herbert likes what he sees from MDA Space (MDA Space Stock Quote, Chart, News, Analysts, Financials TSX:MDA).

As reported by the Globe and Mail, the analyst June 24 maintained his “Outperform” rating and price target of $16.00 on MDA.

“We believe investor sentiment should benefit from several tailwinds, including improving 2025-2026 top-line visibility, increasing confidence in execution, visibility on peak capex, and strong industry fundamentals,” Herbert wrote.

The analyst broke down where MDA is at with regards to efficiency.

“The primary satellite facility is undergoing a substantial expansion, and the level of automation provided incremental confidence in the margin outlook,” Herbert wrote. “Management remains confident on incremental new business as well as the potential for the expansion of the Telesat and Globalstar contracts. As the focus for investors shifts from top-line to margin and execution, the expanding satellite facility supports a bullish view, in our view.”

Herbert said investors may begin to see the fruits of the company’s labours later this year.

“In 2H24, the company expects to be in a position to announce the next production phase of the Canadarm3 program, as well as to identify the customer for its Authorization to Proceed (ATP) contract,” Herbert said. “The outlook for new satellite contract announcements remains on track, expected in 1H25. The level of automation in the facility is impressive. MDA outlined a learning curve for the Aurora satellites, targeted a 60-per-cent reduction in production hours from satellite 1 to satellite 200. We believe investor confidence in the long-term high-teens margin potential is important for continued stock multiple expansion.”

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

Tagged with: mda
Staff

Recent Posts

Is IMAX stock a buy? (July, 2024)

With an improving international footprint, Roth MKM analyst Eric Handler thinks there is money to be made on IMAX (IMAX… [Read More]

2 days ago

Quipt Home Medical a “Top Pick” at Ventum

With its stock on an extended slide, Ventum Capital Markets analyst Stefan Quenneville thinks there is money to be made… [Read More]

3 days ago

Sylogist wins “Top Pick” status at Ventum

Despite a strong start to the year for the stock, Ventum Capital Markets analyst Amr Ezzat remains bullish on Sylogist… [Read More]

4 days ago

WELL Health named “Top Pick” at Ventum Capital

The stock has been on fire of late, but Ventum Capital Markets analyst Rob Goff says there is more to… [Read More]

4 days ago

Ascend Wellness a Top Pick at Ventum

Want to make the second half of your year better? Pick up some shares of Ascend Wellness Holdings (Ascend Wellness… [Read More]

5 days ago

Alpha Cognition upgraded at Raymond James

With catalysts on the horizon, Raymond James analyst Rahul Sarugaser has upped his rating and price target on Alpha Cognition… [Read More]

5 days ago