WS Amati Global Innovation Fund on ATS Corporation
Thesis
ATS is a leader in industrial automation systems serving industries including pharmaceuticals, nuclear energy, autos and consumer goods. Recent results were affected by adverse contract timing, but the fund views this as transitory. It believes the issues do not change the longer-term growth and margin-expansion opportunity. The fund materially increased its position during the weakness.
“We believe these are transitory difficulties, and they do not diminish longer term growth and margin expansion outlook for the business.”
Key risks
- Projects can be lumpy
- Adverse contract timing can affect reported results