Q: Hi Team,
What’s your thoughts on Ats share price currently? Is it a buy going into earnings or a bit risky at todays valuation? Share price seemed to be consolidating lately , but recently bouncing up some again now to new highs . What do you predict with upcoming earnings for the company? Do you still feel the company is set to be performing well for the foreseeable future?
Thanks
Shane
What’s your thoughts on Ats share price currently? Is it a buy going into earnings or a bit risky at todays valuation? Share price seemed to be consolidating lately , but recently bouncing up some again now to new highs . What do you predict with upcoming earnings for the company? Do you still feel the company is set to be performing well for the foreseeable future?
Thanks
Shane
5i Research Answer:
It may have consolidated a bit, but as noted it did hit a new high on Thursday. It is not cheap at 26X earnings, and there is some inflation/cost creep concerns here, but also strong overall growth expected. Peer ABB recently reported solid results, and we like the positive momentum here. ATS 'beats' about 75% of the time. EPS is expected to nearly double from 2022 to 2024 estimates. There is always risk to a quarterly stock reaction, and we think investors need to look at a three-year term here. But we continue to like the stock quite a lot.