Advanced Drainage price target lowered to $184 from $192 at Oppenheimer

Oppenheimer analyst Bryan Blair lowered the firm’s price target on Advanced Drainage (WMS) to $184 from $192 and keeps an Outperform rating on the shares. The firm notes shares fell 14.3% after the company missed Q2 numbers and lowered FY25 guidance to reflect continued non-res demand volatility, hurricane-related project delays, and lingering price/cost headwinds. Given the first half of the year performance and current business trends, Advanced Drainage trimmed its FY25 sales outlook. Although the miss and guidance cut were disappointing, Oppenheimer views the second half of the year as reasonably derisked, believes the pullback was notably overdone, and recommends investors take advantage of the current buying opportunity on a differentiated water asset.