AI Summary
MDA Space has secured a significant contract with Airbus to supply antennas for the OneWeb low Earth orbit constellation, building upon its previous success with OneWeb's infrastructure. This repeat order reflects MDA's established reputation and capability for supporting large-scale satellite deployments, likely enhancing its revenue outlook and market position in the growing space industry.
Sentiment Rationale
The contract positions MDA strategically for future growth, similar to past contract wins that propelled stock performance upward.
Trading Thesis
MDA is a buy based on new revenue momentum and anticipated contract growth within 12 months.
Market-Moving
- Contract value from Airbus expected to enhance MDA's revenue streams significantly.
- Previous performance recognition from OneWeb may lead to further contract awards.
- Growing demand for satellite connectivity boosts outlook for MDA's operations.
- Strong position in LEO satellite systems enhances MDA's market competitiveness.
Key Facts
- MDA Space wins contract with Airbus for 880 Ka-band and 440 Ku-band antennas.
- Project is for OneWeb LEO constellation owned by Eutelsat.
- MDA previously supplied close to 2,000 antennas in 2016.
- Contract highlights MDA's role in advanced satellite communications.
- CEO emphasizes MDA's capability for full constellation lifecycle support.
Companies Mentioned
- Airbus (EADSY): Collaborative contract with MDA boosts Airbus's satellite communications projects.
- Eutelsat (ETL.PA): As the owner of OneWeb, it facilitates MDA's extensive involvement in LEO satellites.
- OneWeb (ONEWEB): Recipient of MDA's antennas, strengthening MDA's relationship in satellite deployment.
Corporate Developments
This news falls under 'Corporate Developments' as it involves a significant new contract that reinforces MDA's market position and revenue potential in the rapidly expanding satellite communication sector.