01:12 PM EST, 12/11/2024 (MT Newswires) -- RBC has lifted its one year target on MDA Space ( MDALF ) to $35 (from $30).

MDA Space ( MDALF ) hosted a Sell-side visit and management meeting at its Montreal satellite manufacturing facility, reports RBC.

According to analyst Ken Herbert, confidence in MDA's 3-5 year ~25% revenue outlook will be the most important for sentiment on the stock. The company is also embarking on a major expansion of its satellite production capabilities.

MDA is on pace to significantly increase its Aurora satellite production rate. It is currently producing the equivalent of ~1 satellite per week, and targets hitting a rate of 2/day exiting 2025. For the Lightspeed program, MDA expects to deliver ~6 satellites in 2025, with ~36 satellites scheduled for delivery in 2026,. The vast majority of the 198 on contract is to be delivered in 2027. The key technical hurdle remains the software integration of the satellite system and its on-board processing capabilities. The Lightspeed satellite program is scheduled to pass its critical design review in mid-2025, the next major milestone for the program.

Maintain Outperform.

Price: 29.40, Change: +0.89, Percent Change: +3.12