Scotia raises price target on MDA to $34.00

Following the company’s fourth quarter results, Scotia analyst Konark Gupta has raised his price target on MDA (MDA Stock Quote, Chart, News, Analysts, Financials TSX:MDA).

On March 7, MDA reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $71.0-million on revenue of $347-million, a topline that was up 69%, year-over-year.

“In 2024, the MDA Space team delivered another year of strong execution reflected in 34% and 25% increases in revenue and adjusted EBITDA, helping to further solidify our position as a trusted mission partner and leader in the expanding space industry,” CEO Mike Greenley said. “We continued to grow our backlog, securing the next phases of the Canadarm3 program valued at $1 billion, while advancing work on a number of important programs including the Telesat Lightspeed and Globalstar LEO constellations, Canadarm3 robotic program and MDA CHORUSTM, our next generation Earth observation constellation.”

As reported by the Globe and Mail, Gupta maintained his “Sector Outperformer” rating on MDA while raising his price target on the stock from $28.50 to $34.00.

“MDA reported an outstanding 4Q24, and the stronger-than-expected 2025 guidance and management’s confidence demonstrate that the tariff risk is manageable,” he wrote. “We look forward to seeing if MDA can secure another constellation before year-end (the next big catalyst) as it would signal upside to 2025 FCF and lead to an uptick in our 2026 revenue expectations (some positive market signals include Telesat being among those seeking to win Brazil’s government constellation and the UAE reportedly considering a constellation)”.