Royal Bank Of Canada Issues Pessimistic Forecast for Advanced Drainage Systems (NYSE:WMS) Stock Price

Key Points

• Royal Bank of Canada cut its price target for Advanced Drainage Systems from $178 to $170 while maintaining an “outperform” rating, implying roughly 35.6% upside from the stock’s $125.38 price.
• Despite the downgrade, analyst sentiment remains positive: eight analysts rate WMS a Buy and two rate it Hold, producing a “Moderate Buy” consensus and an average price target of $187.40.
• Advanced Drainage Systems recently exceeded quarterly expectations, reporting $2.49 in EPS versus the $2.10 consensus and approximately $1 billion in revenue, up 20.6% year over year.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) had its target price reduced by stock analysts at Royal Bank Of Canada from $178.00 to $170.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the construction company's stock. Royal Bank Of Canada's target price would suggest a potential upside of 35.59% from the stock's current price.

A number of other research analysts also recently weighed in on the company. Barclays raised their price target on Advanced Drainage Systems from $181.00 to $191.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Zacks Research upgraded shares of Advanced Drainage Systems from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. Stephens reissued an "overweight" rating and set a $175.00 target price on shares of Advanced Drainage Systems in a report on Monday, September 21st. Robert W. Baird set a $206.00 price target on Advanced Drainage Systems in a report on Friday, August 7th. Finally, KeyCorp reiterated an "overweight" rating on shares of Advanced Drainage Systems in a research report on Monday, June 22nd. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $187.40.

Advanced Drainage Systems Trading Down 1.1%

WMS stock traded down $1.35 during trading on Wednesday, hitting $125.38. The company had a trading volume of 7,541 shares, compared to its average volume of 818,867. The firm has a 50-day moving average price of $134.67 and a 200-day moving average price of $140.23. The stock has a market cap of $9.45 billion, a price-to-earnings ratio of 21.68, a PEG ratio of 1.45 and a beta of 1.29. Advanced Drainage Systems has a 12 month low of $122.90 and a 12 month high of $179.32. The company has a quick ratio of 1.18, a current ratio of 2.12 and a debt-to-equity ratio of 0.95.

Advanced Drainage Systems (NYSE:WMS - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The construction company reported $2.49 EPS for the quarter, beating analysts' consensus estimates of $2.10 by $0.39. Advanced Drainage Systems had a return on equity of 28.28% and a net margin of 14.00%. The company had revenue of $1 billion during the quarter, compared to analysts' expectations of $991.39 million. During the same period in the prior year, the business posted $1.95 EPS. Advanced Drainage Systems's revenue was up 20.6% on a year-over-year basis. As a group, analysts predict that Advanced Drainage Systems will post 6.57 earnings per share for the current year.

Institutional Trading of Advanced Drainage Systems

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Advanced Drainage Systems during the second quarter valued at about $3,297,000. BlackRock Inc. purchased a new stake in Advanced Drainage Systems during the 2nd quarter valued at about $1,172,482,000. Cibc World Market Inc. purchased a new position in Advanced Drainage Systems in the 2nd quarter worth approximately $1,278,000. Pictet Asset Management Holding SA boosted its position in shares of Advanced Drainage Systems by 32.9% during the first quarter. Pictet Asset Management Holding SA now owns 2,204,801 shares of the construction company's stock valued at $302,290,000 after buying an additional 546,298 shares during the last quarter. Finally, Weiss Asset Management LP bought a new stake in Advanced Drainage Systems in the 1st quarter worth about $5,170,000. 89.83% of the stock is owned by institutional investors.

About Advanced Drainage Systems

Advanced Drainage Systems, Inc NYSE: WMS designs and manufactures water management solutions for infrastructure, construction, agriculture and residential applications. The company is best known for its thermoplastic corrugated pipe and related products used to manage stormwater, drainage and wastewater.

Its product portfolio includes stormwater detention and treatment systems, drainage pipe, septic wastewater systems, fittings, chambers, pumps and other water management components. Advanced Drainage Systems also provides products for agricultural drainage, commercial and residential construction, and large-scale infrastructure projects.

Founded in 1966 and headquartered in Hilliard, Ohio, the company serves customers primarily across North America through manufacturing facilities, distribution centers and a network of independent distributors.

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