Blow out Q4 - from TD ---> new target $62++Blowout Q4; business beat Q4 widely on revenue and EBITDA, target price rises slightly to $62 (from $59).
In our view MDA provides a decent fundamental return plus the option value of cash deployment. On this front –
and we view this as the key catalyst for the stock – MDA continues to
evaluate potential acquisitions. Management repeated on the call that barring
any near-term deals the cash would be returned to shareholders. We estimate
that a substantial issuer bid at a 5% premium to the current price could
repurchase 25-30% of the shares outstanding.
despite this why the sp is down?