Advanced Drainage price target raised to $193 from $182 at Stephens

Stephens analyst Trey Grooms raised the firm’s price target on Advanced Drainage to $193 from $182 and keeps an Overweight rating on the shares. Advanced Drainage’s Q4 results beat expectations on all fronts, with all segments seeing sales growth and expanding gross margins, the analyst tells investors in a research note. The midpoint of the FY25 sales guide was slightly lower than expectations, but adjusted EBITDA was in-line and margins were better, Stephens says. While Q1 margins will likely be challenged as the year-ago period saw significant price/cost benefits, the firm expects margin expansion from volume leverage for the balance of the year.