In our last report update, we felt if ATZ could resume its growth trajectory, the company could experience a positive valuation multiple re-rate, and that scenario has played out. ATZ reported solid operating results in the most recent quarter, with encouraging comparable sales and topline growth, disciplined cost and inventory control. ATZ’s business momentum is solid. ATZ’s growth story and financial targets of an annualized growth in sales of 15%-17% on average until FY2027 are certainly achievable given the execution. That being said, the tariff uncertainty, which could cause consumers to pull back on discretionary items, is a potential headwind for ATZ. Management gave conservative guidance with a wide range of outcomes for the full year because of this. With the recent results, we are comfortable with an upgrade; however, due to uncertainty caused by the trade war, we are maintaining our rating at “A-”.

WELL’s management is actively providing shareholders a better picture of the value of its holdings and subsidiaries, as management believes the public market currently undervalues WELL’s share price. WELL’s leverage level is at the higher end of the historical averages, which we would prefer to see come down over the near term, either through organic earnings growth or debt repayment. In addition, WELL’s recent operating results are quite strong, and the company is a name that has limited exposure to the trade war uncertainty. WELL also has some potential catalysts for upside potential, as some of its subsidiaries are expected to go through initial public offerings (IPO) in the near term. We think investors could do well owning WELL over the next three to five years as the company continues to execute its growth playbook. We are maintaining our rating of ‘B+’.

Andlauer Healthcare Group (AND) announced on Thursday April 24, 2025, that it will be joining the UPS family of companies in an all-cash transaction at $55.00 per share. UPS has agreed to acquire AND, valuing the company at $2.2 billion, which represented a premium of 31.1% over the closing price prior to the announcement.