U.S. investment bank J.P. Morgan sees MDA Space (MDA) shares gaining 25 per cent by year-end. The Canadian satellite and robotics firm debuted on the New York Stock Exchange last month, raising its profile with international investors.

With wars raging and NATO facing unprecedented challenges, Brampton, Ont.-based MDA has seen its Toronto-listed shares (MDA.TO) climb more than 70 per cent over the past year.

MDA’s work spans the iconic Canadarm robot system that assists astronauts in space to low-Earth-orbit satellites for communications in remote regions. In January, it announced a contract with the U.S. Missile Defense Agency linked to America’s Golden Dome missile defense initiative.

J.P. Morgan analyst Seth Seifman initiated coverage on Monday with an “overweight” rating, and a US$34 price target for the U.S. listing, implying 25 per cent upside by December 2026.

Seifman says MDA’s communications satellite business has big growth potential, thanks to both commercial and military demand. At the same time, he predicts the legacy robotics business will continue to play an important role.

“MDA’s long-standing partnership with the Canadian government has established the company as a leader in space-based robotics,” he wrote in a note to clients on Monday.

“MDA is also a supplier to U.S. primes on the Space Development Agency constellations for missile warnings and tracking.”

Toronto-listed MDA shares closed 6.76 per cent higher on Monday at $40.41. In New York, MDA shares in New York closed 6.91 per cent higher at $29.09.

J.P. Morgan was a lead underwriter for MDA’s U.S. initial public offering last month, alongside RBC Capital Markets. Yahoo Finance