Q: What is your view on MDA Space, trajectory of growth, competition and current valuation ?
Would you be comfortable starting a new position at current level ($27) ?
Would Trump's proposed 25% tariffs impact this co ?
Thank You
Would you be comfortable starting a new position at current level ($27) ?
Would Trump's proposed 25% tariffs impact this co ?
Thank You
5i Research Answer:
We think MDA looks solid and that it is buyable. The company has picked up contracts over the last few months and is working to expand its production facility that is said to double production capacity when it is expected to be online in H2 2025. Fundamentals have improved in general and if the company can execute on its backlog, then it can perform well. Approximately 41% of MDA's total revenues year-to-date were derived from the US, so tarriffs could have some impact, but we would not view this as a major risk to the company. At 25x forward earnings we think the space is interesting and there is potential for growth.