Luke Morison, an analyst from Canaccord Genuity, maintained the Buy rating on Advantage Solutions. The associated price target is $2.50.
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Luke Morison has given his Buy rating due to a combination of factors related to Advantage Solutions’ ongoing transformation and financial performance. The company has been undergoing a significant restructuring, which has started to yield improvements in operations and cash flow, despite some uneven growth, particularly in their Branded Services segment. The Experiential Services segment has been a strong performer, with improved activity and productivity, supported by better staffing and brand demand, leading to high profitability.
Despite challenges in Branded and Retailer Services, where spending cuts and project timing have impacted results, the company has shown strong cash flow execution, reducing leverage and improving working-capital gains. Advantage Solutions plays a vital role in coordinating between brands and retailers, and its services remain essential even in slower markets. With a valuation that appears attractive, Morison views the stock as having asymmetric upside potential, driven by strong cash generation and a focus on margin recovery and stability as the company moves forward.
ADV’s price has also changed slightly for the past six months – from $1.290 to $1.200, which is a -6.98% drop .