ATS Corp shares drop nearly 40% as company shifts focus to life sciences

ATS Corp. (NYSE:ATS) shares have dropped nearly 40% from their peak, trading at $26.10 recently. The company has shifted focus from the automotive sector to life sciences, improving its revenue mix and achieving higher profit margins. ATS has reduced its reliance on integration projects, with their contribution to revenue falling from 70% in 2017 to 40% in 2023. The company has maintained strong customer relationships, with 90% of clients being repeat customers. Despite the stock's decline from a peak of $48, it is currently valued at 10x NTM EV/EBITDA and 15x NTM EPS, suggesting a potential buying opportunity. However, some analysts believe other AI stocks may offer better returns.