Stephens analyst Trey Grooms downgrades $Advanced Drainage (WMS.US)$ to a hold rating, and adjusts the target price from $193 to $135.
According to TipRanks data, the analyst has a success rate of 59.3% and a total average return of 14.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Advanced Drainage (WMS.US)$'s main analysts recently are as follows:
The company has revised its guidance downward due to a combination of factors including non-residential sector challenges, weather-related issues, and rising input costs.
The surprise in Advanced Drainage's Q2 earnings miss and guidance reduction was notable, considering the quarter was expected to trend more consistently despite an unstable non-residential environment. Although sales were impacted by storm effects and unfavorable price/cost dynamics, the period was marked by robust infrastructure and residential sales.
The firm observed that shares dropped 14.3% following the company's failure to meet Q2 expectations and subsequent reduction in FY25 forecasts, which accounts for ongoing volatility in non-residential demand, project delays due to hurricanes, and persistent challenges with pricing and costs. In light of performance in the first half of the year and recent business trends, the company has adjusted its FY25 sales projections. Despite the disappointment stemming from the missed targets and lowered guidance, the analyst considers the prospects for the second half of the year to be relatively secure and suggests that the market's reaction may have been excessively severe, presenting a favorable buying opportunity for a unique water infrastructure asset.
Note:
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