Upgrade: Analysts Just Made A Meaningful Increase To Their MDA Space Ltd. (TSE:MDA) Forecasts

Shareholders in MDA Space Ltd. (TSE:MDA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. 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 a noteworthy 28% to CA$27.91 over the past week. Could this upgrade be enough to drive 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 substantial 46% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 71% to CA$1.11. Previously, the analysts had been modelling 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.

View 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that MDA Space's rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 26% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. 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 biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, MDA Space could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple MDA Space analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.