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Investing.com - KeyBanc raised its price target on Dycom Industries (NYSE:DY) to $295.00 from $255.00 on Wednesday, while maintaining an Overweight rating on the telecommunications infrastructure company. The stock, currently trading near its 52-week high of $255.65, has shown remarkable momentum with a 32% gain over the past six months according to InvestingPro data.
The firm cited Dycom’s position in the early years of a multi-year telecom investment expansion cycle as the primary reason for the increased target. This expansion is being driven by private investments in fiber, federal and state funded rural broadband programs, and datacenter-led fiber builds. The company’s strong positioning is reflected in its robust revenue growth of 12.8% over the last twelve months.
KeyBanc noted that Dycom, as a telecom pure-play trading at approximately 11.3x FY27 estimates, does not have its longer-than-usual growth cycle adequately reflected in its current valuation. However, InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 31.4x and strong financial health metrics.
The research firm highlighted Dycom’s national presence and scale in wireline construction as factors that could enable strong revenue growth, potentially reaching double-digit increases in coming years.
KeyBanc continues to maintain Dycom as one of its top picks in the sector, emphasizing the company’s positioning to benefit from ongoing telecommunications infrastructure investments. With analyst targets ranging from $250 to $300, and 13 additional InvestingPro Tips available, investors can access comprehensive analysis and detailed valuation metrics through the Pro Research Report available on InvestingPro.
In other recent news, Dycom Industries reported impressive fiscal first-quarter 2026 results, surpassing expectations from BofA Securities and Wall Street. The company’s performance was significantly bolstered by revenue contributions from its Black & Veatch acquisition. Dycom has also increased its full-year 2026 revenue guidance, setting it above market consensus, with projections ranging from $5.29 billion to $5.425 billion. Analysts from JPMorgan, BofA Securities, and UBS have raised their price targets for Dycom, citing strong earnings and a positive outlook. S&P Global Ratings upgraded Dycom to ’BB+’ due to its steady earnings growth and strong profitability, projecting revenue expansion to $5.3 billion this year. DA Davidson also raised its price target to $265, maintaining a Buy rating, and highlighted Dycom’s elevated revenue and expanding margins. The company is expected to benefit from long-term growth drivers such as fiber-to-the-home deployments and wireless network expansion. Dycom’s record backlog of $8.1 billion and ongoing service and maintenance operations further underscore its growth trajectory.
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