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CIBC Initiates Coverage of MDA Space with Outperformer Rating and C$57.00 Price Target

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CIBC Capital Markets initiated coverage of MDA Space (MDA.TO) with an outperformer rating and C$57.00 price target..

CIBC views MDA Space as a "compelling pure-play on the rapidly expanding space economy."

"We are initiating coverage of MDA Space with an Outperformer rating and $57.00 price target, applying a 21x EV/EBITDA multiple on 2027E," said CIBC.

CIBC's investment thesis rests on "three core pillars", which are, the company's unique exposure to multiple secular tailwinds driving the space boom; its status as a scaled, well-capitalized and profitable pure-play amid an industry of mostly unprofitable peers; and a valuation that is undemanding relative to both A&D peers and space-sector peers, CIBC stated.

"Key near-term catalysts are tied to funded programs, reinforcing our confidence in the company's trajectory," said CIBC.

According to CIBC, MDA's robust pipeline, profitability, and net cash position set it apart from legacy A&D players with limited growth and from newer space entrants that lack earnings.

"We value MDA at 21x F2027E EBITDA, in line with higher-growth, profitable SMID-cap A&D peers, and we see further upside potential as the company executes on its pipeline," added CIBC. "Should MDA win an incremental 5% share of the LEO market over the next two years, we see upside of 5% and 14% to our 2026 and 2027 revenue estimates, respectively, translating to an implied equity value of ~$65/share."

Price: $53.12, Change: $+0.63, Percent Change: +1.20%

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