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Investing.com - JPMorgan has raised its price target on Dycom Industries (NYSE:DY) to $275.00 from $250.00 while maintaining an Overweight rating on the stock. The move aligns with the broader analyst sentiment, as InvestingPro data shows six analysts have recently revised their earnings estimates upward, with a highly bullish consensus rating of 1.11 (1.0 being most bullish).
The firm cited improved execution and operational efficiencies that are enhancing margin performance for the telecommunications infrastructure provider. JPMorgan now expects Dycom to achieve margins of 13-14% going forward, up from historical levels of approximately 12%. The $7.44 billion market cap company has demonstrated strong financial health, maintaining a healthy current ratio of 2.89 and achieving a 12.77% revenue growth in the last twelve months.
Dycom reported organic growth of 3.4% in the most recent quarter, excluding $139.8 million in revenues from recently acquired businesses not owned in the last twelve months. The company’s backlog decreased to $7.989 billion from $8.127 billion in the previous quarter, with next-twelve-month backlog down 1.7% sequentially to $4.604 billion.
JPMorgan noted that Dycom won a new services and maintenance contract after the quarter closed, which will increase the company’s backlog for the fiscal third quarter.
The new $275 price target is based on JPMorgan’s January 2026 (fiscal 2027) outlook, representing an increase from the previous target of $250.
In other recent news, Dycom Industries reported its second-quarter 2025 earnings, revealing a notable earnings per share (EPS) of $3.33, which exceeded analysts’ expectations of $2.92. However, the company experienced a revenue shortfall, posting $1.38 billion compared to the anticipated $1.41 billion. This mixed financial performance has caught the attention of investors and analysts alike. Meanwhile, Berenberg has reiterated its Buy rating on Glencore (OTC:GLNCY), maintaining a price target of GBP3.50. Despite Glencore’s shares underperforming, with a decline of approximately 16% year-to-date, Berenberg remains optimistic about the company’s prospects. The underperformance is partly attributed to weaker thermal and metallurgical coal prices impacting Glencore’s revenue. These recent developments highlight the dynamic nature of the market and the varying performance of companies within the industry.
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