Dycom Industries stock price target raised to $300 from $265 at DA Davidson

Investing.com - DA Davidson has raised its price target on Dycom Industries (NYSE:DY) to $300 from $265 while maintaining a Buy rating on the stock. The company’s shares, currently trading at $257.26, have delivered an impressive 47.8% return year-to-date, according to InvestingPro data.

The firm cited Dycom’s first-half margins reaching multi-year highs despite modest year-to-date organic growth in the low single digits. These margins are the strongest seen since the comparable period in fiscal 2017, when organic growth was in the mid-teens. The company’s solid financial health is reflected in its strong current ratio of 2.89 and EBITDA of $560.81 million.

DA Davidson noted that Dycom’s business model has historically achieved EBITDA margins above 17% in the early 2000s or above 14% in more recent history, suggesting considerable earnings per share accretion potential if such levels are reached again.

The analyst highlighted several growth drivers for Dycom, including expanding fiber-to-the-home initiatives, AI-supported demand for middle-mile and long-haul fiber networks, and work directly around data centers.

DA Davidson’s new price target represents 14x and 12x the firm’s fiscal 2026 and 2027 EBITDA estimates, respectively, with the analyst noting that higher multiples may be achievable given Dycom’s margins exceed infrastructure services peer group averages.

In other recent news, Dycom Industries reported its second-quarter 2025 earnings, revealing a notable performance with earnings per share (EPS) of $3.33, exceeding the projected $2.92. However, the company experienced a revenue shortfall, reporting $1.38 billion compared to the anticipated $1.41 billion. In light of these developments, JPMorgan has raised its price target for Dycom Industries to $275 from $250, maintaining an Overweight rating. The firm highlighted improved execution and operational efficiencies, which are expected to enhance Dycom’s margins to 13-14%, up from historical levels of approximately 12%.

Meanwhile, Berenberg has reiterated its Buy rating on Glencore Plc (OTC:GLNCY), with a price target of GBP3.50. Despite Glencore (LON:GLEN)’s shares underperforming this year, with a decline of about 16%, Berenberg remains optimistic. The underperformance is partly attributed to weaker thermal and metallurgical coal prices impacting the company’s revenue. These recent developments reflect the dynamic environment in which both Dycom Industries and Glencore are operating.

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