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On Thursday, BofA Securities analyst Alex Waters increased the price target for Dycom Industries (NYSE:DY) shares to $250 from the previous target of $210, while reiterating a Buy rating on the stock. The stock, currently trading at $221.37, has shown remarkable momentum with a 28.77% gain year-to-date and sits near its 52-week high of $228.66. According to InvestingPro analysis, Dycom appears to be trading above its Fair Value. This adjustment follows Dycom’s announcement of fiscal first-quarter 2026 results, which surpassed both BofA’s and Wall Street’s expectations. The company’s performance was notably bolstered by significant revenue contributions from its Black and Veatch acquisition completed in 2024.
Dycom has also raised its full-year 2026 revenue guidance, setting it above the market consensus. The company benefits from several long-term growth drivers, including traditional telecom and cable wireline builds, the burgeoning data center and Broadband Equity, Access, and Deployment (BEAD) opportunity, and the expansion of wireless networks. These factors are supported by Dycom’s extensive maintenance program. With a market capitalization of $6.37 billion and impressive revenue growth of 12.61%, Dycom demonstrates strong financial health, earning a "GREAT" overall rating from InvestingPro’s comprehensive analysis system.
The revised price objective of $250 is based on an approximately 11.0x fiscal year 2027 estimated enterprise value to EBITDA multiple, which has been rolled forward from the same multiple applied to the fiscal year 2026 estimate. Currently, Dycom trades at an EV/EBITDA multiple of 13.72x, with trailing twelve-month EBITDA of $543.27 million. For deeper insights into Dycom’s valuation metrics and 13 additional ProTips, explore the detailed analysis available on InvestingPro. This valuation reflects the increased potential stemming from the identified growth vectors. Following the quarterly results and management’s commentary, BofA Securities has updated its estimates for Dycom.
In addition to the strong financial performance and raised guidance, BofA Securities views the transaction between AT&T and Lumen Technologies (previously known as CenturyLink (NYSE:LUMN)) as positive for Dycom. AT&T, Dycom’s top customer, is expected to accelerate the pace of deployments beyond the 500,000-unit pace previously established by Lumen Technologies. This could further strengthen Dycom’s position in the market and contribute to its growth trajectory.
In other recent news, Dycom Industries has reported strong financial results for the first quarter of fiscal year 2026. The company posted earnings per share (EPS) of $2.90, significantly exceeding analysts’ forecast of $1.65, and achieved revenue of $1.259 billion, surpassing the expected $1.19 billion. Following these results, Dycom raised its full-year revenue guidance to a range of $5.29 billion to $5.425 billion, indicating a growth range of 12.5% to 15.4%. The company attributes its robust performance to increased demand in telecommunications and digital infrastructure, particularly in fiber-to-home deployments and hyperscaler infrastructure projects.
Additionally, JPMorgan and UBS have both raised their price targets for Dycom, with JPMorgan increasing its target to $250 and UBS to $258, citing the company’s strong earnings performance and positive growth outlook. Dycom has also updated its revenue guidance for the second quarter of fiscal year 2026, projecting contract revenue between $1.38 billion and $1.43 billion. The company expects adjusted EBITDA to be in the range of $185 million to $200 million, with EPS anticipated to be between $2.74 and $3.05. Analysts from UBS project approximately 14% organic growth for Dycom over the remaining period of fiscal year 2026, driven by ongoing fiber and wireless infrastructure projects.
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