10:45 AM EDT, 08/09/2024 (MT Newswires) -- RBC has raised its target on MDA Space ( MDALF ) to $18 (from $16) after the company reported a 24% increase in second quarter revenue to $242 million, beating consensus estimates by ~10%. The Robotics & Space Operations segment led the growth (up 33%) followed by Satellite Systems (up 22%) and then Geointelligence (up 15%). FCF generation of $110 million was a highlight of the quarter, as bookings and program funding supported net working capital, allowing MDA to reduce debt.

The strong second quarter, coupled with improved 2024 outlook, has significantly reset expectations higher, and should be a positive for sentiment on the stock, RBC said.

Maintain Outperform.

Price: 13.87, Change: +0.30, Percent Change: +2.21