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MDA Space Ltd. has secured new contracts with the Government of Canada and Telesat Corp. for military satellite communications, as Canada increases its defense spending. This follows a $45-million contract awarded to MDA as part of a $1-billion Canadian Space Agency initiative to develop a modern radar satellite system.

Despite recent challenges, including the termination of a contract with EchoStar and potential issues with Globalstar, MDA's stock has rallied over 18% since mid-November. The company's project backlog has grown to over $6 billion, with revenue growth of 34% expected in 2024.

Analysts suggest that MDA shares are undervalued at nine times the estimated adjusted EBITDA for 2027. A pipeline valued at $20 billion over the next five years strengthens the long-term outlook for the company, despite competitive pressures from SpaceX.