Lake Street says American Vanguard guidance ‘kitchen-sinked,’ beating ‘deserved’

Lake Street notes that American Vanguard’s Q2 results fell modestly below the firm’s depressed estimates and aftermarket shares fell by over 30% as FY24 guidance was “kitchen-sinked as new leadership embarks on a restructuring effort.” While shares took “a deserved beating,” the firm believes a swift recovery could arise as the company’s infrastructure is in place for immediate results from the restructuring process and macro support can come as the supply chain pivots from destocking to just-in-time ordering exiting 2024. The firm maintains a Buy rating and $14 price target on American Vanguard shares.