MDA Space stock price target lowered to C$45 by RBC on EchoStar contract loss

Published 09/09/2025, 15:08
MDA Space stock price target lowered to C$45 by RBC on EchoStar contract loss

Investing.com - RBC Capital has lowered its price target on MDA Space Ltd (TSX:MDA) (OTC:MDALF) to C$45.00 from C$53.00 while maintaining an Outperform rating following the termination of a major satellite contract.

MDA Space announced that EchoStar has terminated its C$1.8 billion satellite contract with the company. According to MDA Space, the cancellation resulted from a change in EchoStar’s business strategy.

The terminated contract was previously viewed as a de-risking event for MDA’s future backlog and growth projections, and its loss now presents renewed concerns for investors.

RBC Capital has adjusted its financial projections for MDA Space, reducing revenue estimates by approximately C$250 million for fiscal year 2026 and C$460 million for fiscal year 2027 to reflect the contract dismissal.

Despite the setback, RBC Capital remains optimistic about MDA Space’s project pipeline, citing this as the reason for maintaining its Outperform rating despite the reduced price target.

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