Revised Targets Canaccord Genuity’s Doug Taylor cut his MDA Ltd. target to $15 from $20, remaining above the $13.50 average, with a “buy” rating, while BMO’s Thanos Moschopoulos lowered his target to $11 from $13 with a “market perform” rating.
“MDA posted a better-than-expected Q1 and kept its guidance for the year unchanged on the back of several substantial bookings that are expected to drive an uptick in growth in H2/22. The company said it expects to finalize contracting for Telesat’s Lightspeed program by the end of June, setting up a key catalyst that should give more confidence in this year’s execution against that guidance and cement the growth profile into 2023. This is likely to make the current valuation, at 8 times EBITDA using the 2022 guidance midpoint, look too cheap vs. historic norms and comps,” said Mr. Taylor.