John Zechner on BNN - Top Pick MDA Ltd. (MDA TSX)
Latest purchase $10.00 – December 2021
MDA returned to the public market in 2021 as a global leader in orbital robotics and satellite infrastructure/subsystems. It is generating positive free cash flow and an attractive valuation. Opportunity continues to exist in the low-Earth orbit (LEO) satellite constellations driven by the demand for internet communications as governments act to improve internet access.
A very strong balance sheet will support capital spending as it rolls out new programs. MDA projects annual revenue growth of over 25 per cent over the next five years as several key ‘flagship programs’ roll out, but some delays this year lead to a wave of year-end selling that has, in our view, created a great, long-term buying opportunity.