ATS Maintained at Buy at Stifel Canada; Price Target Kept at C$52.00

MT Newswires Live04-21

Stifel Canada on Monday maintained its buy rating on the shares of ATS (ATS.TO) and its C$52.00 price target as it sees little impact from a fresh round of U.S. tariffs.

"We view the expanded Section 232 tariffs on steel and aluminum as not having a material impact to ATS. ATS is a global end-to-end automation provider (Design + Build + Service) of high-performance robotic systems with valuable end-market exposure, including Life Sciences (~60% of sales). Approximately 20% of ATS' revenue is associated with flows into the U.S. from Canada and Europe with a large proportion currently exempt under USMCA with risk mitigation underway, including substantial expansion at Chicago facilities. Although the tariff situation remains fluid and Section 232 raises questions with certain other companies impacted, we believe ATS' global operations, contract protections in-place and the long-term nature of mission-critical projects (12-18 months) provide ample flexibility to navigate at this stage. We are also encouraged by recent insider buying, including new (Jan. start) CEO, Doug Wright and ATS' largest shareholder, Mason Capital at ~C$41/share, near current levels," analyst Justin Keywood wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 45.03, Change: +0.22, Percent Change: +0.49

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