Q: Why the big drop in price. Was at $15 start of May now 11.66. Is there upside in the next quarter and going forward
5i Research Answer:
MDA missed revenue and EBITDA estimates in the Q1 (released early May) and the stock has been weak since. Workers also went on strike this month. There remains uncertainty, but very good earnings growth is expected into 2025. Quarterly results are harder to call as the company's business is somewhat 'chunky'. We think the drop makes it attractive, but only for those with at least a 3-year timeframe. We would expect a bouncy ride in the short term.