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On Thursday, KeyBanc Capital Markets adjusted its price target for Dycom Industries (NYSE:DY) shares, reducing it from $229.00 to $201.00, while sustaining an Overweight rating on the stock. The move followed Dycom’s disclosure of financial results for the fourth quarter, which showcased revenues reaching $4.7 billion with a 12.6% year-over-year growth and margins that exceeded forecasts. According to InvestingPro data, the company maintains strong financial health with a 3.58/5 growth score, while analysts maintain a Strong Buy consensus. Sangita Jain, an analyst at KeyBanc, attributed the strong performance in part to revenue generated from storm-related work.
Despite the positive results, Dycom’s guidance for the first quarter was lower than anticipated, which the company attributed to ongoing adverse weather conditions. Additionally, the California wildfires had a negative impact on the company’s base operations. However, for the first time, Dycom has provided a full-year revenue growth outlook, projecting an increase of 10-13% for the fiscal year 2026. InvestingPro analysis suggests the company is currently trading slightly below its Fair Value, with additional insights available in the comprehensive Pro Research Report, which covers what really matters about this and 1,400+ other top stocks.
Jain noted that there are no indications of a slowdown in Dycom’s growth trajectory. The analyst believes that the company’s cautious approach to guidance, which excludes any potential Broadband Equity, Access, and Deployment (BEAD) program contributions due to political uncertainties, is prudent. Despite recent share price fluctuations that Jain described as frustrating, the analyst remains optimistic about Dycom’s prospects. The company is expected to benefit from the ongoing multi-year fiber buildout.
The revision of the price target to $201.00 is based on a lower multiple, reflecting a reduced risk tolerance among investors. This adjustment takes into account the current market conditions and the challenges faced by Dycom, including the impact of severe weather on its operations. With a P/E ratio of 20.5x and moderate debt levels, as revealed by InvestingPro data, the company maintains solid fundamentals. Nonetheless, KeyBanc’s Overweight rating aligns with the broader analyst consensus, indicating a belief in the company’s fundamental strength and its potential for stock performance in the long term.
In other recent news, Dycom Industries Inc . reported its fourth-quarter and full-year fiscal 2025 earnings, surpassing analysts’ expectations. The company delivered an adjusted diluted EPS of $1.17, exceeding the forecasted $0.93, and reported revenue of $1.085 billion against a projected $1.02 billion. This marked a year-over-year revenue growth of 13.9% for the fourth quarter. Dycom also announced a new $150 million share repurchase program following the expiration of its previous authorization. The company has been heavily investing in fiber-to-the-home and hyperscaler projects, which have contributed to its robust financial performance. Analysts from Raymond (NSE:RYMD) James and Associates and other firms have shown interest in Dycom’s strategic initiatives and growth prospects. The company has outlined a positive outlook for fiscal year 2026, anticipating revenue growth of 10-13%, with specific projections for the first quarter. Dycom’s CEO, Dan Pajevic, emphasized the company’s focus on innovation and infrastructure expansion, highlighting its commitment to long-term growth opportunities.
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