MDA Space's Acquisition of Collecte Localisation Satellites Positions it as a Full-Service Space Firm, RBC Says

MT Newswires Live07-16

MDA Space's (MDA) planned acquisition of Collecte Localisation Satellites positions it as a full-service space company, with an established European footprint and business diversification, RBC Capital Markets said in a Wednesday research note.

The company is also well-positioned to benefit from commercial and defense investments as the space industry continues to offer a lucrative investment window, according to the note.

Although investor concerns loom around the company's current complex operating structure, mergers with Blue Canyon Technologies and the upcoming CLS were likely vital for market access with scope for higher, longer-term synergies as the space sector matures, analysts wrote.

The company's recurring revenue model is a positive for the geointelligence business, which could partly alleviate pressure on out-year backlog concerns, according to the brokerage.

The brokerage said it reiterated its outperform rating on the stock and price target of 58 Canadian dollars ($41.34).

Price: 31.04, Change: -2.17, Percent Change: -6.53

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