Dycom Industries stock price target raised to $300 by Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Dycom Industries (NYSE:DY) to $300 from $290 while maintaining a Strong Buy rating on Thursday. The new target represents potential upside from the current price of $257.26, though InvestingPro data indicates the stock is trading above its Fair Value. The company’s stock has already surged 50% over the past six months, with analysts maintaining a strong bullish consensus.

The firm cited Dycom’s position as a leading engineering and construction services provider to telecommunications companies, which are continuing their "20 years of catch-up to incumbent cable over the next five years." This market leadership is reflected in the company’s solid financials, with revenue growing at nearly 13% and maintaining a healthy gross profit margin of 20%.

Raymond James highlighted the significant opportunity in data center infrastructure, noting that management indicated the total addressable market for outside plant data center network infrastructure could reach $20 billion over just the next five years.

The firm expects this spending to be backloaded over the period and likely increase further into the next decade, based on discussions with public and private data centers indicating growing demand for specialized fiber networking in complex campuses.

Raymond James believes Dycom is well-positioned with its specialized labor force to win market share in both rewiring existing facilities and new construction opportunities in this expanding market.

In other recent news, Dycom Industries reported its second-quarter 2025 earnings, revealing a strong performance with earnings per share (EPS) of $3.33, which exceeded the forecast of $2.92. However, the company experienced a revenue shortfall, reporting $1.38 billion compared to the expected $1.41 billion. DA Davidson raised its price target for Dycom Industries to $300 from $265, maintaining a Buy rating, citing the company’s first-half margins reaching multi-year highs. Similarly, JPMorgan increased its price target to $275 from $250, also maintaining an Overweight rating, due to improved execution and operational efficiencies that are enhancing margin performance. JPMorgan now anticipates Dycom’s margins to be between 13-14%, an improvement from historical levels of approximately 12%. Meanwhile, Glencore Plc (OTC:GLNCY) received a reiterated Buy rating from Berenberg, despite its shares underperforming year-to-date. Berenberg noted that Glencore (LON:GLEN)’s underperformance is partly due to weaker thermal and metallurgical coal prices impacting revenue. These developments highlight the current financial landscape for both Dycom Industries and Glencore.

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