Advanced Drainage Systems (WMS) delivered a fiscal Q1 that "puts the high end of the guide in play" amid normal seasonal trends, Deutsche Bank said Friday in a note.

Adjusted earnings before interest, taxes, depreciation, and amortization topped Wall Street expectations in Q1, driven by better-than-expected sales trends and strong margins, the note said.

The company on Thursday reaffirmed full-year net sales guidance in the range of $2.83 billion to $2.98 billion. Analysts surveyed by FactSet expected $2.89 billion.

"Management characterized demand as flattish and tepid" in Q1 with sales growth fueled by mergers and acquisitions, while organic sales eased, the note said.

Deutsche Bank raised its price target on Advanced Drainage Systems stock to $144 from $130 and maintained its buy rating.

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