MDA Space (MDA) delivered strong Q2 results, with contract wins and acquisitions supporting its growth outlook, RBC Capital Markets said in a note emailed Monday.

Recent company commentary has focused on its Blue Canyon Technologies and CLS acquisitions as well as new contract wins, the investment firm said, adding that investors appear supportive of MDA Space's move toward becoming a more broad-based space and defense company.

Analysts said they are skeptical that space companies will remain as vertically integrated over the long term. Still, MDA's geographic expansion through BCT and CLS and its greater focus on defense support sentiment on the stock and "represent the best near-term uses of capital for the company."

The company's revised 2026 guidance implies growth slowing to about 2% year-over-year in H2, and, based on investor feedback, this slowdown is a key focus, according to the note.

MDA Space is well-positioned to capture more of the Canadian commercial and defense space market, supported by strong growth in defense spending, the firm said.

RBC Capital Markets maintained its outperform rating on MDA Space and raised its price target to 60 Canadian dollars ($43) from CA$58.

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