Q: I'm recently down fast with MDA and I know why. Will it turn around or should I invest the money elsewhere. Thanks
5i Research Answer:
Recent contract wins by competitors and Starlink news has hurt MDA shares. Its target price was also lowered this week at Scotiabank ($33 to $28.50). It has the potential to turn but some patience may be required. Trade wars could help the space sector if international clients worry about Trump/Musk and Starlink. EPS growth is expected this year and valuation of course is better than a month ago. We would be OK holding this now, with a view to rate it a buy on more weakness.