ATI AirTest should move higher, this analyst says

The stock is down considerably over the past two years, but investors can expect upside from current levels regarding ATI AirTest Technologies (ATI AirTest Technologies Stock Quote, Charts, News, Analysts, Financials TSXV:AAT). That’s according to independent technical analyst Clive Maund, who sees a rally shaping up in the chart.

“The good news is that the stock is being pumped again with good reason, so we should soon see considerably higher prices again,” Maund said in a Tuesday Streetwise Reports article.

Maund said on the one-year chart a Cup base formed between late September of last year and the start of March, with strong volume on the right-hand ascent. That’s been followed in the past few weeks by consolidation, producing a Cup & Handle base, with Maund predicting the consolidation may continue for a stretch. 

ATI’s fundamentals look good, too, according to Maund, who pointed to the company’s growth potential even during the currently difficult economic period.

“Whilst the number of shares in issue is on the high side at 222 million, it should be noted that half of these are owned by management and insiders, and in any event, the current low price of the shares reflects this,” he said.

Delta, BC-based ATI AirTest makes environmental sensors for commercial buildings to help with efficiency and energy conservation, with products such as CO2 sensors, humidity and temperature modules and condensation monitors.

Last week, ATI announced an agreement with energy efficiency firm Star Energy Solutions to bring energy solutions to large retail, hospitality and institutional customers. ATI said the partnership presents an opportunity to create a target market for its new wireless Demand Control Ventilation solutions. 

“Both of the companies and their clients will be winners as energy reduction of significance should be achieved in the near term,” said ATI AirTest CEO Ted Konyi in a press release. “Early discussions suggest that AirTest’s technology will be well received. We look forward to working with Star.”

With a current market cap of $5.5 million, AAT hit a high of $0.18 per share in March of 2021 and then a low of $0.01 this past November. Year-to-date, the stock is up 150 per cent.

Maund said, “ATI Airtest is regarded as an attractive speculative Buy at these levels for further appreciation and potentially big percentage gains from the current low price. Note that it barely trades on the US OTC market, where limit orders should always be employed, although volumes should improve with the price.”