ATS Corp T.ATS

Alternate Symbol(s): ATS

Industrials

ATS Corporation is an automation solutions provider. It uses its knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added solutions, including pre-automation and after-sales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets, such as life sciences, transportation, food and beverage, consumer products, and energy. It engages with customers on both greenfield programs, such as equipping new factories, and brownfield programs, including capacity expansions, production relocations, equipment upgrades, software upgrades, efficiency improvements and factory optimizations. It offers post-automation services. It offers artificial intelligence and machine-learning-based tools for industrial production. It designs and manufactures automated water purification solutions. It also manufactures lab equipment for the life sciences and pharmaceutical industries.

TSX:ATS - Post by User

ATS Corp

<< Previous

Bullboard Posts

Next >>

Post by retiredcfon Nov 04, 2022 10:01am

129 Views

Post# 35072770

More RBC

November 4, 2022

ATS Automation Tooling Systems
Announces C$192MM (US$140MM) of EV orders

TSX: ATA | CAD 44.60 | Outperform | Price Target CAD 55.00

Note: Priced as of market close on October 28, 2022.

Sentiment: Positive

What happened: ATS announced its Industrial Automation business has received Bookings for the continued capacity expansion of automated battery module and pack assembly systems in North America from an existing global automotive customer, valued at ~C$192 million (US$140 million). These Bookings include the design, build, and installation of turnkey battery assembly systems, and are part of a previously disclosed multi-phase enterprise program (expected to be executed over the next 18-24 months).

Our view: This is the third announcement from the previously disclosed multi-phase enterprise program. The first announcement under this program was for C$90 million, announced on June 17, and the second announcement was for C$231 million, announced on October 3. The market reaction to the most recent (second) order was quite positive (stock was up ~10% on the day), and we expect a positive reaction to today's announcement as well given its size. In our view, this EV order (particularly at this point in the economic cycle) supports our thesis that ATS is well positioned to deliver strong top-line growth and margin improvement, driven by its defensive/less cyclical end-market exposure and evolving (higher-margin) business mix. This announcement also highlights ATS' strong positioning in the EV space, which we expect will be a growth market over the coming years.