On Wednesday, RBC (TSX:RY) Capital maintained its Outperform rating on shares of MDA Space Ltd (MDA:CN) (OTC: MDALF) and increased the company's price target from Cdn$30.00 to Cdn$35.00. The adjustment follows a recent sell-side visit and management meeting at MDA's satellite manufacturing facility in Montreal, which aimed to provide insights into the company's revenue projections and production capabilities.
During the visit, analysts were given a tour of the facility to observe the production processes and discuss the company's plans for scaling up operations. The event was designed to reinforce confidence in MDA Space's mid-term revenue outlook and its satellite facility's production ramp-up. RBC Capital has highlighted the significance of the company's ability to meet its projected ~25% revenue growth over the next 3 to 5 years as a key factor for investor sentiment.
MDA Space's progress toward achieving a production rate of 2 satellites per day was underscored as a pivotal element supporting the raised price target. The company's advancements in satellite manufacturing are seen as instrumental in meeting the increasing demands of the space industry.
The reaffirmed Outperform rating and the revised price target reflect the firm's optimism about MDA Space's growth trajectory and its capacity to scale production efficiently. The upgraded price target suggests that the company is positioned to capitalize on the expanding opportunities within the aerospace sector.
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