ATS Should I Buy
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ATS Corporation appears to be a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. The company's strong revenue growth, improved EBITDA, positive free cash flow, and favorable analyst ratings outweigh the minor short-term technical and sentiment concerns. The lack of significant trading trends and neutral insider/hedge fund activity supports a stable entry point.
The MACD is positive and expanding, indicating bullish momentum. RSI is neutral at 46.697, suggesting no overbought or oversold conditions. The stock is trading near its pivot level of 27.651, with resistance at 28.841 and support at 26.461. Converging moving averages indicate a consolidation phase.
Revenue increased by 21% to EUR 1.8 billion for FY
EBITDA improved by 49% to EUR 418 million.
Operating free cash flow turned positive, moving from a deficit of EUR 498 million to a surplus of EUR 236 million.
Anticipated revenue growth of 30%-35% with an EBITDA margin of 25%-29%.
Analysts initiated a Buy rating with a price target of C$52, citing high barriers to entry and robust structural demand trends.
Recent downward revision of earnings estimates by 10.4%.
Goldman Sachs maintains a Sell rating with a price target of $30, citing revenue lumpiness due to Capex cycles.
ATS Corporation reported strong financial performance for FY 2026, with a 21% increase in revenue to EUR 1.8 billion and a 49% improvement in EBITDA to EUR 418 million. Operating free cash flow turned positive, moving from a deficit of EUR 498 million to a surplus of EUR 236 million. The company anticipates 30%-35% revenue growth in the next fiscal year with an EBITDA margin of 25%-29%.
Desjardins initiated coverage with a Buy rating and a price target of C$52, citing high barriers to entry and robust structural demand trends. Scotiabank raised the price target to C$51 from C$48 with an Outperform rating. However, Goldman Sachs lowered the price target to $30 from $31 and maintains a Sell rating.
