TD Securities lowered its price target on ATS Corp. (ATS.TO) to $49 from $59 on Tuesday.

Analyst Cherilyn Radbourne maintained a Buy rating on shares of the Canadian automation systems manufacturer.

The company announced on Monday that CEO Andrew Hider will leave the company by the end of August.

Its shares declined $3.56, or 8%, to $40.49 on the Toronto Stock Exchange.

"New investors will likely stay on the sidelines until a new CEO is names, but we expect existing shareholders to stick with the strong growth platform Andrew Hider has built, which should attract a strong candidate pool," Radbourne said in a note to clients.

"Decentralized management and a long-time, strategic shareholder should provide interim continuity," the analyst said.

"ATS could also become an acquisition target, which offers downside protection."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)