MDA Ltd T.MDA

Stephen Takacsy - BNN - TOP PICK

[Possibleidiot01]

TOP PICK

MDA Ltd.(MDA-T)

28/03/2024

 

Global leader in the field. There's a new "space" economy, and MDA is well positioned to capture a good share. $3B  backlog. Clear visibility for 20% revenue and EBITDA growth per year for the next few years. Recently added to TSX Composite, underfollowed stock. 9x EBITDA, really cheap considering massive growth potential. No dividend.

(Analysts’ price target is $16.25)

electrical / electronic

 

$14.770

Owned

MDA (MDA TSX)

Is the old McDonald Detwiller and is the only pure-play space technology company in the world and a global leader in its field. Since the cost of launching satellites has plummeted over the past decade, there is now a whole new “space economy” developing around satellite-based telecommunication, earth observation data, and other space infrastructure, for which MDA is really well positioned. They are in three business segments: geo-intelligence, robotics, and satellite systems. MDA currently has a $3.1 billion backlog providing clear visibility for 20 per cent to 25 per cent EBITDA growth per year over the next three years.

This is driven by a $2 billion contract for Telesat’s Lightspeed broadband LEO constellation of 198 satellites expected to be financed by the Canadian government any week now. This is also driven by several other LEO (low earth orbit) constellations such as Apple’s Globalstar emergency connection and another as yet unnamed smartphone provider, possibly Google or Samsung. MDA has a technological lead over competitor having developed digital satellites which are more efficient and configurable, thus lowering operating costs for their customer. MDA was recently added to the TSX Composite Index yet is still a relatively unknown stock trading at under nine times 2024 EBITDA which is very cheap given its massive growth potential.