11:08 AM EDT, 09/04/2025 (MT Newswires) -- Advanced Drainage Systems ( WMS ) is expected to maintain stable operations despite sluggish demand, Oppenheimer said.

The company's $65 million Engineering and Technology Center in Hilliard, Ohio, opened in October 2024 and impressed analysts during a site visit.

The facility consolidates research and development efforts, allowing Advanced Drainage Systems ( WMS ) to test material reformulations more efficiently, enhance collaboration, and accelerate product development, the brokerage said in a Wednesday note.

Advanced Drainage Systems ( WMS ) maintained its fiscal 2026 guidance after strong fiscal Q1 results, and Oppenheimer noted the company has a reasonable chance to beat its outlook for earnings before interest, taxes, depreciation, and amortization if more accommodative rates support broader demand.

Oppenheimer highlighted that despite mixed construction demand, the company is well-positioned to extend market outgrowth, sustain strong margins and returns, and potentially accelerate top- and bottom-line growth through the second half of fiscal 2026 into fiscal 2027.

The firm maintained its outperform rating and $165 price target on Advanced Drainage Systems ( WMS ).

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