Q: Hi,
Your thoughts would be appreciated on the new $1.3B EchoStar contract announcement. What is your take on ability to deliver and future prospects? Is MDA benefitting from concerns about relying on StarLink?
Thank you, Michael
Your thoughts would be appreciated on the new $1.3B EchoStar contract announcement. What is your take on ability to deliver and future prospects? Is MDA benefitting from concerns about relying on StarLink?
Thank you, Michael
5i Research Answer:
MDA has benefited from Starlink/Musk concerns, with investors viewing the Trump/Musk feud as good for competitors. While there are always contract risks, we would not have big concerns on MDA's ability to execute. The contract was very impressive, up to $2.5B with options. Delivery is 2028 with commercial service in 2029. To put it into perspective, 2025 revenue estimate is $1.6B. We think the stock remains quite attractive at 32X earnings.