Advanced Drainage price target lowered to $161 from $174 at Baird

Baird lowered the firm’s price target on Advanced Drainage (WMS) to $161 from $174 and keeps an Outperform rating on the shares. The firm said beyond estimate cuts/recalibrating for lower non-res expectations, concerns center on the inability to raise prices to offset higher material costs but this is really a cyclical discussion, pricing is stable sequentially, pricing should recover with demand, and absolute margin levels are impressive.