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Left with an earnings “vacuum”

■ ATA revealed that it has received a termination notice from Dyson for its contract manufacturing agreement.
■ We are negative on this development as 1) Dyson historically accounted for c.81-88% of revenue, and 2) it contradicts prior guidance from management.
■ We slash our earnings forecasts and downgrade ATA to a Reduce. Our TP is now based on a P/NTA of 0.6x, with an additional 20% ESG discount.

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