ATS Corporation initiated with a Sell at Goldman Sachs

Goldman Sachs initiated coverage of ATS Corporation with a Sell rating and $34 price target, implying -8% downside from current levels. The analyst views automation as a long-term secular theme given aging demographics, a tight labor market and the opportunity for productivity gains, but believes the company’s end markets in the near-medium term are at a “cyclical pause.” Outside of life sciences, order trends have either been declining or muted across the rest of ATS’s portfolio and, as such, its organic growth will likely decline in fiscal 2025, the analyst tells investors in a research note.