Q: What is your outlook for MDA at these levels? Is the recent billion dollar contract adequately factored into the current share price?
5i Research Answer:
Earnings growth over the next two years does look quite good, but with its run-up the valuation we think does reflect this and the contract already. Still, it is getting upgrades, and the CEO sees demand for space communications to continue to grow fast over the next decade. So we would not be surprised to see the stock still move higher, just not at the same pace as the last six months. It is a fairly unique stock in Canada and the sector sentiment is positive.