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Baird Downgrades ATC Technology (ATAC) to Neutral

May 22, 2009 10:12 AM EDT
ATAC Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 12 | New: 36
Robert W. Baird downgrades ATC Technology (Nasdaq: ATAC) from Outperform to Neutral.

ATC released news late last night that it received verbal indication from Honda of their intention to in-source the remanufacturing of automatic transmissions as early as year-end. This remanufacturing made up about 10% of ATC's sales last year. As a result, the company has withdrawn its FY09 outlook.

Shares of ATC have sunk about 20% on the news. The stock most recently traded at $13.92.

ATC Technology Corporation, through its subsidiaries, provides outsourced supply chain logistics services and engineering solutions to the consumer electronics industries, and light and medium/heavy-duty vehicle aftermarket primarily in the United States.

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