Hi there,
While we like AT and first put it on our watchlist when it was trading at $4.43 per share, we do think it has gotten ahead of itself. The company is trading at all-time high valuations, near 60 times book value, 9 times sales. and 130 times forward sales. The expectation is for modest revenue growth of 24% next year and analysts have a one-year target of $9.97 per share.
The company is also well into overbought territory with a 14-day RSI of 91. Although not a guarantee, this may mean the company's stock price is due for a pullback.
At this point, it has already achieved best-case scenario from when we added it to the watchlist - the runup has been incredible. While it certainly can continue this run as many companies have stretched record valuations in this market, personally, I would not be a buyer here. In fact, even with an eye towards the long term - the company will have to deliver flawlessly to justify its current valuation and the risk to reward proposition is not all that attractive to me here.
Mat