MDA shares poised for 25%+ growth as backlog and competitive position strengthen, says BMO

Investing.com  |  Editor Ahmed Abdulazez Abdulkadir

Published Dec 11, 2024 11:56

MDA shares poised for 25%+ growth as backlog and competitive position strengthen, says BMO

On Wednesday, BMO (TSX:BMO) Capital Markets maintained a positive outlook on MDA Space Ltd (MDA:CN) (OTC: MDALF), with a revised price target suggesting confidence in the company's growth prospects. The price target was increased to Cdn$33.00, up from the previous Cdn$28.00, while the Outperform rating was reaffirmed.

The upgrade comes in the wake of a recent management update and a tour of MDA's Montreal facilities, which was arranged for sell-side analysts. During the visit, MDA showcased its robust backlog, promising pipeline, and competitive edge in the market. The company's management expressed confidence in sustaining a growth rate of over 25% for the next three to five years.

BMO's analyst highlighted MDA's potential for multiple expansion, driven by its growth trajectory. MDA's involvement in the manufacturing of a new satellite constellation for Globalstar (NYSE:GSAT) and Apple (NASDAQ:AAPL) was noted as a particularly significant factor that could bolster the company's market position and growth.

MDA's strong competitive position and the expectation of a sustained high growth rate are seen as key drivers behind the raised price target. The company's strategic role in upcoming aerospace projects, including the collaboration with Globalstar and Apple, is anticipated to contribute to its performance and valuation in the near future.

The new price target of Cdn$33.00 reflects BMO Capital Markets' belief in MDA's ability to capitalize on its current market opportunities and to continue expanding its presence in the aerospace sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Get The App
Join the millions of people who stay on top of global financial markets with Investing.com.
Download Now

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes