American Vanguard initiated with a Buy at Lake Street

Lake Street initiated coverage of American Vanguard with a Buy rating and $14 price target. Underperformance in FY23 and the first half of FY24 in an “already cyclically weak” agricultural chemical sector has battered American Vanguard, but with shares at a 14-year low the firm believes the market has “near-zero expectations of an improvement” and believes shares can rebound from hyper-depressed levels in the near term. The firm sees “multi-bagger potential over the mid-term if internal efforts deliver as expected,” the analyst added.