MDA Space Ltd T.MDA

Scotiabank Raise Target

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Scotia’s Konark Gupta increased his MDA Space Ltd.  target to $33 from $29 with a “sector outperform” rating. The average is $30.88.

“We maintain our SO rating while raising our target ... to reflect MDA’s solid long-term prospects, aided by its growing footprint,” he said. “We attended MDA’s analyst day in Montreal, which included a tour of its world-class satellite design, manufacturing and testing facility (center of excellence; currently under expansion) and presentations from key executives: Mike Greenley (CEO), Guillaume Lavoie (new CFO), Luigi Pozzebon (VP Satellite Systems), Sylvain Riendeau (VP Operations, Satellite Systems), Giovanni D’Aliesio (Director Business Development, Satellite Systems), and Shereen Zahawi (Head of Investor Relations). We came away with better appreciation of MDA’s growth opportunities across all segments, capacity expansion plans, efficient operations, and strong bench / highly-motivated employees. While the stock has significantly outperformed over the past two years, which could drive some volatility, we expect further upside as space renaissance continues, MDA remains well-positioned to win its fair share, management is executing well, and forward EV/EBITDA valuation at 13.3 times/10.8 times on 2025/2026 estimates doesn’t look demanding vs. comps at 13.5 times/13.0 times.”