Target price = $18??? Canaccord takes ebitda estimates for 2024 from $183.1 million to $206 million and notes that lower growth Aerospace and Defense peers trade at 12x forward EBITDA.
12x $206 million 2024 ebitda is $2.5 billion. Current net debt is $218 million. Even if assume that net debt will increase due to Chorus build, $2.5 billion less ~$350 mm in assumed net debt by 2024, means equity value of $2.15 billion. With 120 million shares out, this is $18 per share. Furthermore, as Chorus moves from cash drainer to cash contributor, 2025-2027 would mean more growth in free cash.
listen to Bnn interview and earnings conf call about the momentum and technological advantage that is driving MDA.
Famous last words perhaps, but this seems like a layup from current levels .
Good luck