MDA Space stock jumps 35% in one month as investors show strong interest
MDA Space rose more than 35% in one month, thanks to new contracts, positive analyst targets, strong revenue growth, and higher demand in the defense and space industries. A growing backlog and increased satellite production support the long-term outlook, but the stock remains volatile.
SPACE STOCK
MDA Space Ltd. (TSX: MDA) has caught the market’s attention after climbing more than 35% in just one month. The stock closed on Friday at 36.70 CAD, boosted by the new Canadian government and private contracts, positive analyst opinions, and strong long-term growth forecasts tied to the growing global space industry.
MDA Space has three main areas: Satellite Systems, Robotics for Space Operations, and Geointelligence. In early 2026, the company produced two satellites per day at its new facility. It is now preparing to launch its next-generation commercial earth observation constellation, called CHORUS, on a SpaceX Falcon 9 Rocket.
Fundamentals of MDA Space
MDA Space currently trades at a PE ratio of 43.34 and has a market cap of 4.54 billion. The stock has been volatile, hitting a record 46.36 in August 2025 before dropping to 21.44 in November. Over the past five years, the company’s revenue has grown by an average of 34% each year, and net income skyrocketed from 2.9 million in 2021 to an impressive 109 million in 2025.
Quarter after quarter, MDA Space’s balance sheet grows stronger. While most of the company's revenue comes from Canada and the United States, the company is expanding into Europe, Asia, and the Middle East. With a 4.49 billion order backlog, ramping up manufacturing could unlock billions more in revenue and boost the stock price.
Recently, Scotia Bank and Morgan Stanley analysts set price targets of MDA Space at C$42 and C$46, respectively.
Rising Defence Spending Driving Increased Demand
MDA Space Demand is being driven by government and military spending in space-based intelligence, surveillance, and communications. Modern defence agencies increasingly rely on satellites, geospatial data, and orbital monitoring to protect and support military operations.
Defence contracts are typically long-term, recurring, and well-funded. Investors view these government deals as reliable revenue streams and often factor them into their expectations for the company’s future growth.
Currently, rising tensions heighten the importance of space-based intelligence, space awareness, and resilient satellite systems, as modern warfare depends on real-time data, positioning, and communications.
Should you buy MDA Space Stock?
Many top analysts now rate MDA Space as a Buy, with price targets above its current level. Some firms have recently lowered their targets and updated earnings estimates. The company has strong revenue growth, a large backlog, and contracts that provide visibility into 2026. However, space and defence stocks often go through cycles and can be affected by global events and changing budgets.
Disclaimer: This post is for educational and informational purposes only and does not provide financial, investment, legal, or tax advice. www.vandhdaan.com is not a licensed financial advisor. Please consult a qualified professional before making financial decisions based on this content.
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