ATSAF - ATS Automation Tooling Systems: We Are Cautious Given The Current Macro Backdrop
Investment Thesis
ATS Automation Tooling Systems (ATSAF) (TSX:ATA) delivered a solid Q1 F2020 with strong revenue growth. The company also significantly increased its backlog in the quarter. Looking forward, the company is well-positioned to grow its business in the areas of life sciences and electric vehicle through its two acquisitions announced last year. However, several leading economic indicators are revealing possible signs of weakness in the future. Therefore, despite its attractive valuation, we think investors may want to stay on the sideline.
Data by YCharts
Q1 F2020 Highlights
ATS delivered a solid quarter