Opinions Stockchase Insights
ATS Automation Tooling SystemsATS.TOHOLDApr 28, 2023
Stockchase InsightsStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Quite a bit of volatility, watching closely. Latest quarter's revenue was ahead of expectations, though bookings have softened. Missed earnings because of the mix and timing, not due to demand collapse.
Sacrificing short-term growth to focus on higher-quality businesses. Sees price target of ~$50.
Brianne GardnerInvestment thesis remains firmly intact. Bookings remain resilient, strong backlog. Improving margins. Sees ~15% upside. Ranks 8/10 fundamentally.
Still a great entry point.
Brianne GardnerRemains one of the most compelling automation platforms in the market. Benefits directly from structural shifts in reshoring, labour scarcity, and modernization of global manufacturing. Positioned at the high-value end of this trend.
Project pipeline remains healthy. Margins improving. Recent price momentum reflects business resilience. Sees ~10% upside, with strong price target around $49-50. No dividend.
Brianne Gardner(Note the short timeframe.) Not a full year, so letting the stock play out. Still builds the machines that build everything else, and they sit quietly behind the products we all rely on. Analysts have recently raised price targets. Revenue growth expected to cool, but profitability is doing more of the heavy lifting.
She sees ~25% upside from here. 8/10 on fundamentals. Should do well in next 6-12 months.
Brianne GardnerUpward trend from April selloff, showing strong support from the technical side. Fiscal 2025 EPS was slightly down, but forecast to rebound. Price target is 10% upside from here. Still below 52-week high. Analysts remain confident in company's leadership despite CEO stepping down, and she'll be monitoring closely.
It is in the industrial space which she likes. Has a $2 billion backlog. It is now re-focusing on high value sectors. She sees 18% earnings per share growth and 20% upside overall. It has strong momentum and she rates it an 8 out of 10. Buy 6 Hold 2 Sell 1
(Analysts’ price target is $51.47)Brianne Gardner
Struggling. The best we can say is that the chart seems finally to be stabilizing. Hard to say whether it needs a washout before the downtrend is over. Trying to bottom, but hasn't picked up yet.
When you ask yourself what could happen, technicians look at a 50% retracement, where a stock would give up half of the move. So, if you went from $15 to $60, that's a $45 gain. Half of that is $22.50. The high of $60 - $22.50 brings you to $37.50, which is close to the 2022 lows.
Investors are still fretting about the decline in the backlog, and then its largest shareholder compounded problems by selling a large block of shares. We would remain a HOLD at the current (cheap) valuation and reference this recent answer. We might start picking away with more at the $42 level in any further declines.
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Lots of contracts in last year that were EV-related. Recently, EV sales slowed. Market got worried, stock came down. Yesterday, largest shareholder offloaded stock. Good time to buy in mid-high $40s, EVs aren't going away. Probably just delays, no cancellations. Accretive acquisitions in life sciences, which are high margin.
ATS is an industry-leading automation solutions provider to many of the world's most successful companies. It uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products, and value-added services to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, food & beverage, transportation, consumer products, and energy. Founded in 1978, ATS employs over 6,000 people at more than 50 manufacturing facilities and over 75 offices in North America, Europe, Southeast Asia, and China.Results for the 2nd quarter ended October 2, 2022, were not spectacular. While revenues at $588.9 million were up 12.8 % over the comparable prior year period, net earnings at $29.5 million were basically flat due largely to higher finance costs ($6.2 million, to finance the acquisition of SP) and income taxes ($3.1 million). Adjusted EBITDA at $88.8 million was up 6.6%. Cash at the end of the quarter amounted to $95.2 million after utilizing $44.7 million during the period primarily due to changes in non-cash working capital. The debt-equity ratio is 1.26. With a large backlog ($1.8 billion), established operations and markets as well as experienced management ATS should find opportunities ahead.
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