Fenimore Asset Management, Inc. on Novanta Inc.
Thesis
Novanta makes specialized components for automated healthcare and advanced industrial applications. The business has accelerated since the fund first bought shares about one year earlier. Fenimore remains bullish over the long term despite share-price weakness and market volatility.
“NOVT remains healthy, in our view, despite market volatility and we remain bullish on their long-term prospects.”
Key risks
- Industrial and healthcare investment could slow
- Market volatility could continue to pressure the shares
- Recent appreciation may have increased valuation sensitivity