Q: What are your current thoughts on MDA. Has the recent announcement of the $1 billion contract for the Canadarm3 changed the outlook for this company?
5i Research Answer:
We view the news quite positively, however our outlook on the company is unchanged. We think top and bottom line growth has the potential to expand meaningfully in future years and current levels are attractive. Due to the contractual nature of revenues, more wins like this (do not have to be $1B contracts, but generally large ones) will contribute positively, but it makes quarterly results more difficult to predict. We think there is mid to long term potential but short term moves will be volatile. The new contract is good news for MDA.