ATS Corporation resumed with a Sector Perform at Scotiabank

Scotiabank analyst Jonathan Goldman resumed coverage of ATS Corporation (ATS) with a Sector Perform rating and C$43 price target The firm views ATS as a core long-term holding, saying the company is a direct beneficiary of the long-term trend towards automation. However, a slower margin recovery and elevated working capital due to the electric vehicle customer dispute will delay the company’s deleveraging and keep acquisitions on pause in the near-term, which are prerequisites for a re-rate of the shares, the analyst tells investors in a research note.