Q: MDA has had a great ride over the last 12 months (+171%) - is the share price ahead of itself? Is it too late to take a bite?
Your insight is most welcomed.
Your insight is most welcomed.
5i Research Answer:
Much depends here on the sector and sentiment. The defense/space sector has surged, with many countries increasing defense spending in response to US demands and NATO requirements. MDA is benefiting from this, and has a good backlog and outlook for business. But sentiment has gone from 'blah' to 'wow' in a very short period of time. Any change in sentiment could see some sharp stock setbacks in the group. But......we think based on forecasts MDA is likely fine for one or two years at least, and we would be OK starting a position for more-aggressive growth-focused investors.