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  5. MDA: Outlook for Mda for 2 to 3 year hold,financial metrics and recommended entry price? [MDA Space Ltd.]
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Q: Outlook for Mda for 2 to 3 year hold,financial metrics and recommended entry price? Thanx.
Asked by Steve on December 21, 2024
5i Research Answer:

MDA is not cheap at 37X earnings. But it has nice contract, a competitive edge (barriers to entry), a strong balance sheet and solid growth. EPS should rise at least 33% next year and it has leverage to further contracts. Debt is barely six months' cash flow. Free cash flow was $258M in the last 12 months. The last quarter was very strong and well ahead of estimates. We think $27 would be a good price.