Dycom Industries stock price target maintained at $296 by UBS on growth outlook

Investing.com - UBS has reiterated its Buy rating and $296.00 price target on Dycom Industries (NYSE:DY), citing the company’s long-term growth prospects. The stock, currently trading at $260.41, has shown impressive momentum with a 45.4% gain year-to-date. According to InvestingPro data, six analysts have recently revised their earnings expectations upward.

The investment firm highlighted management’s optimism about multi-year growth potential, noting that most of Dycom’s customer programs remain in very early development stages and will likely take longer to execute than investors currently anticipate. This optimism is supported by the company’s solid financial performance, with revenue growth of 12.6% and a healthy gross profit margin of 20.4%.

UBS pointed to Dycom’s fiber-to-the-home program, which is expected to approach completion around 2030, while noting that revenue opportunity per passing should increase over time.

The firm also emphasized Dycom’s view that the hyperscaler opportunity will extend beyond a decade, representing a significant long-term growth driver for the company.

UBS noted that while Dycom cited a $20 billion total addressable market (TAM) in its second-quarter results, reflecting five years of visibility, the company expects this market opportunity to expand further beyond 2030.

In other recent news, Dycom Industries has seen a series of analyst upgrades regarding its stock price targets. UBS raised its price target to $296, maintaining a Buy rating, following Dycom’s second-quarter results that showed an organic revenue miss and weaker third-quarter growth guidance. Raymond James increased its price target to $300, citing Dycom’s strong position in the telecommunications sector. DA Davidson also raised its price target to $300, highlighting the company’s first-half margins reaching multi-year highs. JPMorgan adjusted its price target to $275, noting improved execution and operational efficiencies that are expected to enhance Dycom’s margins. Meanwhile, Glencore has faced challenges with its stock underperforming, as Berenberg reiterated a Buy rating with a price target of GBP3.50. The underperformance is attributed to weaker coal prices impacting Glencore’s revenue. These developments reflect the latest assessments and expectations from various analyst firms.

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