BofA maintains Dycom stock Buy rating, $210 price target

Monday, shares of Dycom Industries (NYSE:DY) maintained a stable outlook as BofA Securities reiterated its Buy rating and $210.00 price target on the company. The endorsement comes ahead of Dycom’s earnings report for the fourth quarter of fiscal year 2025, scheduled for release on February 26, before the market opens. With a market capitalization of $4.9 billion and strong financial health metrics according to InvestingPro, the company has demonstrated robust performance with a 10.37% revenue growth over the last twelve months. Following the earnings announcement, Dycom will conduct its quarterly earnings call at 9 am Eastern Time.

The reaffirmation of the Buy rating by BofA Securities analyst Alex Waters (NYSE:WAT) follows a week where Dycom faced scrutiny from a short-seller report released on February 19. The report raised several concerns about Dycom’s sector exposure, management team, and accounting practices. However, conversations with investors suggest a strong disagreement with the report’s arguments, with many believing that the points raised were misleading or factually incorrect. In contrast to the short-seller report’s claims, Dycom’s performance in the market was positive, with its shares closing up 2.9%, outperforming its closest peer, Mastec Inc. (NYSE:MTZ), which saw a 0.3% decline, and the broader market, with the S&P 500 index increasing by 0.2% on the same day.

Investor discussions, outside the context of the short report, have been focusing on three primary topics: the impact of winter weather on the fourth quarter of 2025, updates on Broadband Equity, Access, and Deployment (BEAD) under the Trump Administration, and the potential opportunities in the data center sector following the revelations from DeepSeek. The earnings reports from wireline companies have indicated a continued strong investment in fiber-to-the-home and hyperscale-related networks.

Additionally, the unfolding of BEAD allocations at the state level is a point of interest for investors, with the anticipation that there could be a relaxation of Diversity, Equity, and Inclusion (DEI)/Environmental, Social, and Governance (ESG) regulations under the current administration. This contrasts with concerns about satellite communication potentially playing a disproportionately large role in the sector. Dycom’s upcoming earnings call is expected to provide further insights into these areas of investor interest.

In other recent news, Dycom Industries has been the focus of several analyst assessments and reports. Raymond (NSE:RYMD) James reiterated a Strong Buy rating, increasing the price target to $215, citing positive influences from recent snowfall data on the company’s fourth fiscal quarter performance. DA Davidson also maintained a Buy rating with a $220 price target, adjusting its financial model to account for stock compensation expenses related to a CEO transition. KeyBanc Capital Markets kept its Overweight rating with a $227 price target, emphasizing Dycom’s growth prospects tied to the Broadband Equity, Access, and Deployment (BEAD) program and the expanding datacenter segment.

Meanwhile, a short report by Spruce Point Capital Management questioned the sustainability of Dycom’s financial performance, suggesting potential overstatements in its financials and governance concerns. The report highlighted risks associated with telecom industry consolidation and alleged aggressive accounting practices. Despite these allegations, Raymond James analyst Frank Louthan IV defended Dycom, refuting the claims and maintaining confidence in the company’s business model. Investors are closely monitoring these developments as they evaluate the implications for Dycom’s future performance.

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