Goldman Sachs pointed to slowdown in Transportation, EV spending running in late stage of the cycle and company's lack of exposure to semiconductor capital expenditure. If, in your view, these headwinds are already reflected in the current share price, what catalysts do you see for share price appreciation, in the near term and going forward ? ( Besides expected growth in Life Sciences area, but whether, that will be enough to offset weakness in other sectors )
We own a 3% position ( with 20% loss, now ) and are contemplating, if a wait till next earnings release is worth it or this capital could be allocated to more efficient and attractive opportunities in the sector.
Thank You
Thank You
We have some additional comments posted yesterday. Six analysts are still BUYS and two HOLDs, with an average target $65.36. We note that despite the backlog, very good EPS is still expected (consensus) this year, with slower growth in 2025. If it can execute on these numbers and/or win new business and/or make an acquisition we think those could be catalysts. Investors like to 'react' to a downgrade or SELL recommendation, and with the stock listed in the US and the company fairly small the news had a big impact. But nothing has changed from last week, or course, except (now) the valuation. We would like to see the backlog grow for more comfort, but based on ATS's fairly good record of consistent growth we are comfortable holding it for 2024.