CIBC Capital Markets raised its price target on MDA Space (MDA.TO) to $64 from $57.

Analyst Erin Kyle maintained an Outperformer rating on shares of the Canadian space technology solutions and services company. The move comes after MDA announced a deal on Friday to acquire Blue Canyon Technologies for $874 million in cash.

"In our view, the acquisition is a strong strategic fit, adding a US manufacturing footprint that broadens the reach of MDA's portfolio and meaningfully improves its ability to pursue US defence opportunities," Kyle said in a note to clients.

"Blue Canyon is a profitable, cash-generating business, the deal is accretive, and is broadly neutral to slightly favourable on valuation multiples," the analyst said. "MDA still trades at a meaningful discount to US space peers, and we see potential for multiple expansion as its US presence grows."

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