On Thursday, Desjardins began coverage of MDA Space Ltd (MDA:CN) (OTC: MDALF) stock, issuing a Buy rating and setting a price target of C$26.00. The firm highlighted MDA Space as a significant player in the space technology sector, which supplies a wide array of market segments with the notable exception of launch services.
MDA Space is recognized for its involvement in almost every aspect of the space economy, with a product portfolio that includes satellite manufacturing among other services. The company's current order backlog is nearing the C$5 billion mark, indicating a strong demand for its offerings.
The industry in which MDA operates is expected to grow faster than the global GDP, according to Desjardins. This growth is driven by increasing demand in key segments that MDA caters to, such as satellite manufacturing. The firm's assessment suggests that MDA is well-positioned to capitalize on these industry trends.
Desjardins also pointed out that MDA Space presents an attractive investment opportunity with what they consider an asymmetric risk profile. This suggests that the potential for investor gains outweighs the risks of losses, according to the firm's analysis.
In conclusion, Desjardins' initiation of coverage on MDA Space with a Buy rating and a C$26.00 price target reflects their positive outlook on the company's prospects within the expanding space economy. The firm anticipates MDA to garner strong investor interest due to its strategic positioning and limited downside risk.
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