MDA Space Ltd. Secures Military Contracts Amidst Stock Recovery Efforts

MDA Space Ltd. has secured new contracts with the Government of Canada and Telesat Corp. for military satellite communications, as Canada increases its defense spending. This follows a $45-million contract awarded to MDA as part of a $1-billion Canadian Space Agency initiative to develop a modern radar satellite system.

Despite recent challenges, including the termination of a contract with EchoStar and potential issues with Globalstar, MDA's stock has rallied over 18% since mid-November. The company's project backlog has grown to over $6 billion, with revenue growth of 34% expected in 2024.

Analysts suggest that MDA shares are undervalued at nine times the estimated adjusted EBITDA for 2027. A pipeline valued at $20 billion over the next five years strengthens the long-term outlook for the company, despite competitive pressures from SpaceX.