01:56 PM EST, 11/20/2025 (MT Newswires) -- This week, industry minister Melanie Joly said Canada will invest $529 million in the European Space Agency (ESA) for the advancement of R&D of Canadian space technologies.

"This announcement directly supports our Defence investment thesis on MDA," writes Stifel Canada analyst Greg MacDonald. "In our view, Defence policy is now Industrial policy and Canada is shifting toward Europe."

Defence investments will be made with an eye toward domestic industrial growth and Canadian based global leaders (such as MDA) will be direct beneficiaries as dictated by the ESA geographic distribution principle of pay for play, MacDonald adds.

"In our view, the recent market concern over potential loss of the Globalstar contract is overdone and, more importantly, the market is underestimating potential for mega constellation wins from Europe."

Reiterate Buy rating and $48 target on MDA.

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