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  5. ATS: Goldman Sachs just initiated coverage with a "sell". [ATS Corporation]
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Q: Goldman Sachs just initiated coverage with a "sell". Thoughts? A little harsh? Or GS sees something in the last quarter that triggered the decision?

Carl
Asked by Carl on March 26, 2024
5i Research Answer:

It seems a bit harsh to us. The analyst notes concern on a 'cyclical pause' in some of its businesses, and the view was likely triggered by the decline in the backlog last quarter. The analyst expects a decline in organic growth in F2025. This is possible, but we think reflected in the valuation.