RBC trims price target on ATS Corp

Following the company’s second quarter results, RBC analyst Sabahat Khan has trimmed his price target on ATS Corp (ATS Stock Quote, Chart, News, Analysts, Financials TSX:ATS)

‘On November 6, ATS reported its Q2, 2025 results. The company posed Adjusted EBITDA of $78.3-million on revenue of $612.8-million, a topline that was down 16.7% year-over-year.

“Today ATS reported second quarter results for fiscal ’25. Financial results were mixed, given lower transportation revenues, offset by solid execution across the majority of our businesses, most notably in life sciences where we are driving profitable growth both organically and through acquisition,” CEO Andrew Hider said. “We also had the highest quarterly bookings in company history for our life sciences business. As expected, overall revenues were lower as a result of the anticipated reduction in transportation revenues due to shifting customer investment trends in North American electric vehicle production. As planned, we took action to lower our cost structure to address this market dynamic.”

As reported by the Globe and Mail, Khan Thursday lowered his price target on ATS from $52.00 to $48.00. The analyst explained the reasoning behind the move.

“ATS’s FQ2 results were below consensus while FQ3 revenue guidance was also below Street expectations,” he wrote. “The Transportation (EV) business is in transition (leading to lower revenue/negatively impacting margins); however, we believe the worst of it is largely behind us. Going forward, our focus is on the core business (i.e., Life Sciences + F&B + Energy), which is relatively stable through the cycle. We view [Wednesday’s] share price weakness as a buying opportunity as we would expect a recovery from current levels as the company reverts toward its historical ‘staples-like’ exposure.”