HIPs likely to hit MDA
The latest bulletin from research analysts at Scotia Capital says the company is lowering its financial estimates and target price on MDA following the delay and phased introduction of HIPs. The note goes on to say “Our view is that political uncertainty relating to HIPs will remain an issue over the coming quarters. Factors that will affect the potential future of HIPs include: the transition in political leadership to Gordon Brown from Tony Blair; and the government's review of the phased HIP implementation (sometime prior to year-end). MDA's share price fell by 14% following the announcement.