Globe says "limited downside" seen
Globe says "limited downside" seen at MDA Space
2024-11-01 08:13 ET - In the News
The Globe and Mail reports in its Friday, Nov. 1, edition that Desjardins Securities analyst Benoit Poirier believes MDA Space is "primed to attract investor interest, offering what we see as an asymmetric pure-play bet with limited downside." The Globe's David Leeder writes in the Eye On Equities column that in a report released on Thursday, titled "Pure-Play Entry into Space Race 2.0," Mr. Poirier began coverage of the space technology provider with a "buy" rating. He believes the company will benefit from increasing demand in key segments like satellite manufacturing, which is driving a backlog nearing $5-billion. This industry is "set to outpace global GDP growth." Mr. Poirier set a Street-high 12-month share target of $26. Analysts on average target the shares at $19.13. Mr. Poirier outlined five reasons why he likes MDA: "(1) It will benefit from its position in an industry set to grow at GDP plus, propelled by secular tailwinds. (2) The recent space industry trend toward greater commercialization/privatization. (3) A surplus of capacity is set to come on-line in late 2025; MDA is well-positioned to attack the high-growth LEO constellation market. (4) MDA is nearing the end of its heavy capex investment cycle."