MDA is headed to fifty bucks, Jason Donville says

The stock has done better than well, but Donville Kent Asset Management fund manager Jason Donville says there is still money to be made on MDA Space (MDA Space Stock Quote, Chart, News, Analysts, Financials TSX:MDA).

Donville appeared on BNN Bloomberg’s Market Call January 6 to talk about his top picks, of which MDA is one. The money manager said despite nearly tripling its share price since June, he thinks investors should still be excited about it and he told host Andrew Bell why.

“I can’t see these guys growing at anything less than 30% a year for the next three years,” he said. “They have great margins, it’s a great Canadian story.”

So what’s next for MDA investors? Donville says hang on because you ain’t seen nothing yet.

“On my numbers it’s trading around 13 times cash earnings. The stock is around thirty bucks and it’s on its way to fifty bucks, and quickly,” he added. “With all the stuff that is going on in the world, this is a great, feel-good Canadian story. This is an example of just how good Canada can be.”

On November 15, MDA reported its Q3, 2024 results. The company posted Adjusted EBITDA of $55.5-million on revenue of $282.4-million, a topline that was up 38% year-over-year.

“In Q3, the MDA Space team delivered another strong quarter with double digit growth in our top and bottom lines as we continued to execute and convert our backlog,” CEO Mike Greenley said. “The team continued to execute on our major programs, successfully conducting the preliminary design review for the Canadarm3 program, a critical milestone for the program. We also made significant progress on MDA CHORUS™, our next generation Earth Observation constellation, completing the spacecraft assembly and commencing spacecraft integration and testing. And in our Satellite Systems business, the team made solid progress advancing the engineering work for the Telesat Lightspeed program. In Q3, we also broke ground on our Satellite Systems facility expansion in Quebec which will add 185,000 square feet of advanced manufacturing capacity.”