Advanced Drainage price target lowered to $180 from $188 at Loop Capital

Loop Capital lowered the firm’s price target on Advanced Drainage to $180 from $188 and keeps a Buy rating on the shares after its Q1 results. The modest earnings miss due to poor weather was the main sales variance in Pipe business, while EBITDA margins were negatively impacted by tough price/cost comps and higher transportation costs as the company was, in part, repositioning inventory closer to customer locations, the analyst tells investors in a research note. While the Q2 implied guidance was lower than expected as margin headwinds are expected to persist however, the management also remained confident in the full-year outlook as sales trends remain stable and with margins expected to recover in the second half of the year, the firm added.