Q: Hello Peter
one of the lesser known stocks for the Cdn defence sector, most people like MDA which is volatile, is it good for a medium (1 year) or a long term (3 years) hold ?
I have a partial position, waiting to add, hold or buy more, thanks
Michael
one of the lesser known stocks for the Cdn defence sector, most people like MDA which is volatile, is it good for a medium (1 year) or a long term (3 years) hold ?
I have a partial position, waiting to add, hold or buy more, thanks
Michael
5i Research Answer:
MAL is a small ($1.3B) Canadian aerospace and defense supplier, and it has been seeing strong returns amid the defense spending tailwinds. Forward growth estimates are strong, and margins are expanding. Cash from operations are solid, and it trades at a decent valuation of 20X forward earnings. We would be comfortable with the name over a long-term period, but while acknowledging it is small, volatile, and there could be risk of disruption along the way from larger peers. It is approaching critical levels (2018 highs) and we think it could see some consolidation around here, but largely, a move above $23 could be quite positive.