Q: I have heard that Cormark has lowered their target from C $51 to C $ 46 because even though MDA doesn't deal with Artemis Gateway, they were supposed to build Canadarm-3 for the Artemis Gateway a contract worth $1B and I guess, that is out the door.
Is this true and the reason for another drop today?
Is this true and the reason for another drop today?
5i Research Answer:
The drop was due to concerns around the Canadaarm and exposure to Artemis with it being paused. The news doesn't make the Canadaarm itself obsolete and it can be developed and used for other purposes still. MDA has a $4 bln backlog and cited a $40 bln pipeline with $10 bln in opportunities that the company has higher visbility into it, so plenty of demand remains here.