Desjardins Securities raises price target on MDA Space

Following a recent facility tour, Desjardins Securities analyst Benoit Poirier has raised his price target on MDA Space (MDA Space Stock Quote, Chart, News, Analysts, Financials TSX:MDA).

“MDA continues to trade at a significant discount to peers and where it was trading immediately following its IPO,” he wrote. “Furthermore, two recent successful space IPOs south of the border—Karman and Voyager—show the high level of investor interest and enthusiasm for this growing sector of the economy. Bottom line, as MDA continues to execute on its backlog and to increase visibility on new contract awards, these dynamics should support a sustained multiple re-rating.”

As reported by the Globe and Mail, the analyst June 23 maintained his “Buy” rating on MDA while raising his price target from $38.00 to $40.00.

Poirier says the recent political landscape has benefited the company.

“MDA has experienced an uptick in customer conversations as the world looks to diversify away from the U.S./Starlink—repeat order on the horizon?,“ he said. ”The bidding pipeline spans North America, Europe, the Middle East and Africa, with potential customers including not just traditional satellite operators, but also MVNOs, telcos, automakers and sovereign governments. Notably, we believe the market may be underestimating how soon Telesat might exercise its option for 100 additional satellites —potentially even before the initial batch of 198 begins launching.“