CIBC Capital Markets lowered its price target on MDA Space (MDA.TO) to C$59 from C$67.

Analyst Erin Kyle maintained an Outperformer rating on shares of the Canadian space technology company, resuming covering following its offer to acquire Collecte Localisation Satellites.

"With the French Space Agency (CNES) retaining a 30% ownership stake, we believe the transaction also strengthens MDA's positioning within the European space ecosystem and could enhance participation in future ESA programs," Kyle said in a note to clients.

The acquisition adds to revenue and earnings before interest, tax, depreciation and amortization forecasts but Kyle lowered the price target as CIBC resets its valuation multiple.

"The revised multiple reflects a broader contraction across the aerospace and defense peer group, including increased volatility surrounding SpaceX, and is now in line with current sector averages."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)