The Globe and Mail reports in its Wednesday, April 30, edition that Scotia Capital analyst Jonathan Goldman has resumed coverage on ATS with a "hold" recommendation and $43 share target. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $49. Mr. Goldman views ATS as a "core long-term holding" as a result of being a "direct beneficiary of the long-term trend toward automation." Mr. Goldman says in a note: "An inflection in Q3 results and strong order bookings provides good visibility on a better sales trajectory in F26. But, larger orders are causing a disconnect between backlog and revenue conversion. We expect a slower cadence to drive lower SG&A leverage than modeled by the Street and have margins returning to 15 per cent exiting F26, three quarters after the Street. We sit 10 to 15 per cent below for F1Q-F3Q. A slower margin recovery and elevated working capital due to the EV customer dispute will delay deleveraging and keep M&A on pause in the near-term, prerequisites for a rerate, in our view. While the stock has pulled back, expectations are still high per our below-consensus estimates, and we think revisions represent a catalyst to the downside."