Advanced Drainage price target lowered to $160 from $170 at Loop Capital

Loop Capital lowered the firm’s price target on Advanced Drainage (WMS) to $160 from $170 but keeps a Buy rating on the shares. The company reported a slightly better than expected quarter, and the guide to flat revenues and EBITDA for Q4 was well-received against low expectations as investors were bracing for worse given the slower private construction market and pricing fears, the analyst tells investors in a research note. The macro backdrop remains choppy, but Loop is encouraged that Advanced Drainage is seeing stable sequential pricing and raws, also noting that the visibility to EBITDA margin expansion has improved, the firm added.