Street Calls of the Week
Investing.com - KeyBanc raised its price target on Dycom Industries (NYSE:DY) to $320 from $306 on Monday, while maintaining an Overweight rating on the telecommunications infrastructure services provider. The stock, which has surged nearly 90% in the past six months, currently trades at 32.7 times earnings, according to InvestingPro data.
The investment firm reaffirmed Dycom as a top pick, citing multiple growth opportunities in the company’s future. KeyBanc highlighted fiber-to-the-home (FTTH) growth as a near-term catalyst for the company.
The analyst noted that the Broadband Equity, Access, and Deployment (BEAD) program is expected to layer on additional growth over the next one to three years, followed by increased datacenter-led middle mile fiber buildout activity.
KeyBanc expressed the view that Dycom’s current valuation at approximately 12 times FY27 estimated earnings does not adequately reflect the company’s longer-term growth cycle potential.
The firm also pointed to potential operating leverage and improved free cash flow characteristics as revenue growth materializes for the telecommunications infrastructure contractor.
In other recent news, Dycom Industries announced the appointment of Phillip R. Gallagher to its board of directors, effective immediately. Gallagher is the CEO of Avnet, Inc. and brings decades of experience in sales, marketing, and operations. In terms of financial outlook, BofA Securities raised its price target for Dycom Industries to $310, citing potential revenue growth from the Broadband Equity, Access, and Deployment (BEAD) program. UBS also reiterated its Buy rating and increased its price target to $296, emphasizing the company’s long-term growth prospects. Despite a recent organic revenue miss and weaker third-quarter growth guidance, UBS remains optimistic about Dycom’s future. Additionally, Raymond James increased its price target to $300, maintaining a Strong Buy rating, and highlighted Dycom’s role in the telecommunications sector. These developments reflect a positive outlook from analysts regarding Dycom’s growth potential and strategic positioning.
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