Lake Street analyst Ben Klieve reiterated a Buy rating on American Vanguard (AVD – Research Report) today and set a price target of $14.00.
Ben Klieve’s rating is based on a combination of factors that highlight American Vanguard’s potential for significant growth. Despite expectations for the company to report Q4’24 results at the lower end of guidance, there is a stable revenue outlook for FY25, with internal efforts projected to drive over 20% year-over-year EBITDA improvement and a significant reduction in leverage. This positive outlook is bolstered by the company’s strategic focus on its GreenSolutions biological portfolio and the anticipated normalization of supply and demand for its Aztec herbicide offering.
Additionally, American Vanguard appears to be reasonably insulated from tariff impacts, as only one of its six production facilities is located internationally, and its international segment is well-diversified across Latin America. The market’s overreaction to peer performance, particularly that of FMC, is seen as an opportunity, given that American Vanguard’s challenges, such as the Dacthal recall, have been addressed. The company is expected to thrive in a market environment that is stabilizing, positioning it to deliver substantial returns for investors.
According to TipRanks, Klieve is a 4-star analyst with an average return of 3.3% and a 40.83% success rate. Klieve covers the Consumer Defensive sector, focusing on stocks such as Vital Farms, MGP Ingredients, and S&W Seed Company.