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MDA Space stock price target lowered to C$40 by BMO after EchoStar contract termination

Published 09/09/2025, 15:28
MDA Space stock price target lowered to C$40 by BMO after EchoStar contract termination
MDA
1.38%

Investing.com - BMO Capital has lowered its price target on MDA Space Ltd (TSX:MDA) (OTC:MDALF) to C$40.00 from C$53.00 while maintaining an Outperform rating following the termination of a major contract.

The price target reduction comes after EchoStar terminated its US$1.3 billion (C$1.8 billion) contract with MDA Space due to the sale of associated spectrum to SpaceX, according to BMO Capital.

BMO Capital described the contract termination as a "highly unusual event" and indicated it does not see cancellation risk associated with other large contracts in MDA’s backlog.

The research firm stated that MDA Space continues to have a strong pipeline of commercial and government opportunities despite this setback.

BMO Capital expects potential contract awards over the next twelve months could drive "meaningful upside" to MDA Space’s share price, supporting its maintained Outperform rating.

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