CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We have a bullish view on the space economy and MDA's leading position in Canada and the space robotics arena. Our 12-month target price of CAD71 is derived from a 22x EBITDA multiple applied to our FY 27 estimate. With the SpaceX IPO, Artemis missions, and progress in AI compute in space, the space economy is projected to surpass $1T in the next decade and reach $2T by 2040. Currently, MDA's satellite systems generate the lion's share of revenues; however, as space infrastructure matures, we are bullish on its orbital manipulation abilities via Canadarm3, MDA SKYMAKER, and MDA MIDNIGHT. A recent NYSE IPO pushed it into a net cash position, and as a more mature, profitable player in the space sector, it has the potential to expand its valuation multiple, in our view. MDA trades significantly above its three-year forward EBITDA average of 10.1x, but relative to pure-play space names (RKLB, RDW, and SPCX), shares are significantly discounted. Our FY 26 adjusted EPS is CAD1.43 and our FY 27 estimate is CAD1.59.