
TSE:MDA
This summary was created by AI, based on 51 opinions in the last 12 months.
MDA Space Ltd. is positioned strongly within the growing space economy, with a focus on satellite technology and defense applications. Despite some recent volatility, including the loss of a major contract with EchoStar, experts are generally optimistic about MDA's future, citing a robust backlog and expected revenue growth. The satellite business is seen as both critical and capital-intensive, yet MDA is viewed as more reasonably valued compared to its competitors, especially in light of the hype surrounding SpaceX. Moreover, analysts note MDA's ability to adapt and secure new contracts, particularly in the context of increased global defense spending. Overall, while there are concerns regarding competition and market fluctuations, the sentiment leans toward holding or gradually entering into the stock for long-term gains.
EPS of 8c mostly matched estimates (8.2c); revenue of $196M was 1% better than expected. EBITDA of $40.4M was 11.5% better. Results were good, and guidance was raised. MDA also won a very large contract which adds significantly to earnings/revenue visibility. The stock has had a very big run; at 28X earnings it cannot be called cheap, but we think momentum can continue. We can't comment on position size but think it is buyable for aggressive investors, though we would not expect the same pace as recent gains.
Unlock Premium - Try 5i Free
He's been buying this all along. It bottomed at $6 and is now around $8.50. They're like the arms dealer in the old space race--making components in satellites. They're very well positioned. Are generating cash flow and raised full-year guidance. Delivered a good beat last quarter. Their valuation will expand. Satellites will continue to launch so there will be demand.
Last week, the Telesat deal surprised everyone. Nobody saw it coming. MDA developed a technology that really dropped the costs, so they were able to raise the financing. That deal was a feather in the cap, but MDA's demand will grow anyway. He likes the story and is hanging on, not selling any shares.