Q: Considering the uncertainty about its major customer, but taking into account the crucial nature of its products and expertise, does the stock present a buying opportunity at $27.5-$28, present levels, after a drop of 20% over two days, for someone to start a new position ?
We are aware that BMO and Scotia analysts have brought their price targets down to $36 and $40 ( Outperform ratings ) respectively, lowering their P/E multiple to discount possible impact of this news.
Thank You
We are aware that BMO and Scotia analysts have brought their price targets down to $36 and $40 ( Outperform ratings ) respectively, lowering their P/E multiple to discount possible impact of this news.
Thank You
5i Research Answer:
At 18X earnings, we think it is a buying opportunity for opportunistic investors. When MDA gets its next new contract, we think recent fears will be quickly forgotten.