Q: Is it worth continuing to hold ATS? Despite the AI fanfare over the past few years and solid fundamentals, it is massively underperforming the market over the past 12 months.
5i Research Answer:
We would say hold as fundementals are still solid. While performance has been weak especially year-to-date, we like the business and of course fundemantals. The main issue here was from the backlog declining in the last quarter but if this trend can reverse in the future, ATS should see share price appreciation. Additionally, it has a strong track record of growing revenues paired with a good management team which are further reasons to hold.