Opinions James Telfser
MDA Space Ltd.MDA.TOPAST TOP PICKOct 14, 2025
Stock price when the opinion was issued
As of Jun 02, 2026. Market Open.
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US space companies have high growth, but not the best balance sheets and have high PEs. MDA trades cheaper and has great growth. Has a good balance sheet and is profitable. Good momentum. Will benefit from the SpaceX fervor.
Ryan ModestoStronger-than-expected sales and operating profit, reticent to increase guidance. Space economy is big and growing secularly. Cranked up low-orbit satellite production last year, along with product innovation. Some concern on deal with Globalstar, but doesn't look as though it will have to write down the contract.
Brian MaddenTwists and turns in news. AMZN buying out Globalstar should help them. Lumpy, but tailwinds for next 5-10 years.
Bruce Campbell (2)Massive pipeline for new business. Potential contract from Canadian government. Management's doing a great job. More capacity for new clients. Bright future makes stock look cheap.
Andrey OmelchakTrading at 3x book value, around 21x PE. Not bad, given earnings acceleration that's expected, but not inexpensive either. Overall, seems to be doing very well. Some worry over chips available to meet delivery, now resolved.
OK if you're a long-term investor. Satellite business is growing.
Top Pick in August, stopped out in September. He recently participated in the public offering when it sold shares in New York.
You have to be prepared to change your view when the situation changes. Technically, trading above all the moving averages from 200-day on up. Making relative strength highs. Almost at new highs. Space sector is a leadership group in the market.
David BurrowsRegarded as a US company. He thinks it'll be a success. Underlying theme is defense spending picking up 5% across NATO. Space will be a leading area, and MDA is well positioned.
IPO in the US should have no impact, though fluctuations in the CAD/USD will.
Space sector is capital intensive, not many profitable companies. Space costs have really come down. Profitable, high-quality balance sheet. At 30x PE, not cheap but not expensive at all.
Recent earnings looked pretty good, $4B backlog and $40B pipeline. Not worried about cold shoulder from US, as international demand is there with not many competitors. Will work out for a 3-5 year time horizon.
Still likes it. Brutal year last year. Well positioned. Should get more contracts from Canadian fiscal spending as well as from international partners.
John ZechnerMakes satellites. Leading space tech company, positioned to capitalize on expanding global space economy. Defense plus next-gen telecom satellite applications. Aurora satellite has competitive edge with cost-efficiency and high production volume. Large order backlog.
Q4 reports next week, and he expects good results and steady stream of new contract announcements. No dividend.
Brian Madden
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Premium contentLosing the $1.8-billion contract with American telecom EchoStar set them back, but MDA still reported Q3 revenue growth of 45% year-over-year while gross profits rose 43% in that period. Nearly 75% of MDA's business comes from satellites, and this segment gained 69% in this span. More than half of MDA's $4.4-billion pipeline is in satellites. MDA plays into the prevailing theme of defence, while its cash flow is good. Already in 2026, the stock has run up over 50%, but there's still room to run with the street targeting $46.06, about $8 higher than presently. Stockchaser Trevor Rose likes it for its moat.
Yes, we think MDA offers good potential and it also has scarcity value and is in a sector with high barriers to entry.
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Exited a bit higher than today because valuation seemed frothy. He'd likely look at it again if price dropped into the $20s with a lower valuation. Likes the satellite space quite a bit.