MDA Space Poised for Defense Contract Wins to Support Growth Into 2027, RBC Says

MT Newswires Live05-12

MDA Space (MDA) is expected to continue benefiting from investor confidence in its defense opportunities, with potential contract awards in H2 seen to support accelerating growth into 2027 and provide a catalyst for the stock, RBC Capital Markets said in a note Friday.

Management expects the opportunities to develop as both a satellite payload provider and a merchant supplier across the Satellite Systems offering, the brokerage said, adding that MDA remains positioned to benefit from its role as a "Canadian national defense champion."

The brokerage said the Satellite Systems segment, which delivered 41% growth in Q1, remains the key source of growth.

RBC maintained its outperform rating on the stock and raised the price target to 58 Canadian dollars ($42) from C$50.

Shares of the company were up 5.9% in Monday trading.

Price: 36.65, Change: +2.04, Percent Change: +5.88

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