Thanos Moschopoulos, an analyst from BMO Capital, maintained the Buy rating on MDA Space Ltd. The associated price target was raised to C$45.00.
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Thanos Moschopoulos has given his Buy rating due to a combination of factors related to MDA Space Ltd.’s expanding opportunity set and attractive valuation. He highlights that the company’s newly signed memorandum of understanding with Hanwha Systems for a potential Korean LEO defense constellation could evolve into a contract exceeding $1 billion, while acknowledging it depends on Hanwha winning Canada’s submarine procurement. Beyond this, he emphasizes that MDA is positioned to benefit from additional constellation programs and a broad mix of defense and commercial satellite opportunities, which collectively support a higher earnings multiple and justify raising the target price to $45.
Moschopoulos also points to MDA’s substantial and diversified pipeline, which includes a prospective additional RCM satellite for the Canadian government, the ESCP-P military communications program, the Canadian Lunar Utility Vehicle initiative, and both government and commercial LEO constellation projects worldwide. He notes that the company’s status as a key contractor on major programs such as Telesat and Globalstar/Apple strengthens visibility on revenue and EBITDA growth over the medium term. Taken together, the robust backlog, growing pipeline in the structurally expanding LEO segment, and the current trading levels lead him to view the stock as undervalued relative to its growth prospects, supporting his Buy recommendation.
In another report released on January 21, Scotiabank also maintained a Buy rating on the stock with a C$42.00 price target.
Based on the recent corporate insider activity of 51 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MDA in relation to earlier this year.