Q: I bought ATS intending to hold long term (5-8yrs) in my TFSA. A year in it is down 30%. Should I hang on or redeploy towards an industrial with better prospects from today?
Thank you!
Thank you!
5i Research Answer:
We can't answer personally but continue to think ATS has good potential over the long term from current levels. It is still hurting from concerns on its slowing backlog growth, but good EPS growth is still expected over the next couple of years. It is reasonably priced at 17X earnings. There is some risk from its leverage balance sheet, and we would consider it higher risk, but would give it a HOLD rating today.