Advanced Drainage price target lowered to $133 from $143 at Loop Capital

Loop Capital analyst Garik Shmois lowered the firm’s price target on Advanced Drainage (WMS) to $133 from $143 but keeps a Buy rating on the shares. The company missed on Q4 EBITDA and guided below expectations as the weak macro is weighing on the outlook, though its view of lower end market demand across most categories also makes sense, the analyst tells investors in a research note. Given that pricing trends appear to be stabilizing and that there’s line of sight towards lower raw materials however, the guide should be viewed as establishing a floor for earnings, Loop adds.