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Celebrations may be in order for MDA Space Ltd. (TSE:MDA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. MDA Space has also found favour with investors, with the stock up an impressive 28% to CA$27.91 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the eight analysts covering MDA Space are now predicting revenues of CA$1.6b in 2025. If met, this would reflect a sizeable 46% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 71% to CA$1.11. Before this latest update, the analysts had been forecasting revenues of CA$1.4b and earnings per share (EPS) of CA$0.88 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for MDA Space
With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.3% to CA$34.94 per share.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting MDA Space's growth to accelerate, with the forecast 46% annualised growth to the end of 2025 ranking favourably alongside historical growth of 26% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MDA Space to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at MDA Space.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for MDA Space going out to 2027, and you can see them free on our platform here..