Q: Do you see any catalyst that will move this stock higher? Is time on our side?
5i Research Answer:
Investors seem concerned about the drop in backlog and order bookings, suggesting a possible business slowdown. If we begin to see the backlog rebuild in the next quarterly earnings, we feel this could be a catalyst for price appreciation. We believe time is on our side with ATS - it continues to demonstrate strong sales growth, it trades at a reasonable valuation of 20X forward P/E, and its business is very relevant in today's environment. We continue to like the name as part of a long-term holding.