Advanced Drainage price target raised to $188 from $161 at Loop Capital

Loop Capital raised the firm’s price target on Advanced Drainage to $188 from $161 and keeps a Buy rating on the shares. The company reported an “impressive” Q3 while guiding Q4 above expectations, the analyst tells investors in a research note. The implications of the quarter is that Advanced Drainage Systems’ positioning in early cycle private construction end markets is showing up in stronger-than-expected Allied and Infiltrator sales, while the gross margin performance across all segments sets the company up well to expand margins above and beyond what was previously contemplated over the next several years, the firm added.