Raymond James lifts Dycom stock price target to $215

Published 04/02/2025, 12:02
Raymond James lifts Dycom stock price target to $215

On Tuesday, Raymond (NSE:RYMD) James maintained a Strong Buy rating on Dycom Industries (NYSE:DY) and increased the price target to $215 from the previous $210, aligning with the broader analyst consensus that remains strongly bullish. Currently trading at $185.42, Dycom has demonstrated remarkable performance with a 60.66% return over the past year. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model. The adjustment follows the completion of the fourth fiscal quarter of 2025 (F4Q25), with the firm’s analysis incorporating recent snowfall data which is expected to influence the company’s performance positively in the quarter.

The analyst at Raymond James, Frank Louthan IV, stated that the snowfall for the quarter, while higher than the previous year, remained below the 10-year average. This deviation led to an upward revision of revenue estimates by approximately 100 basis points, fitting within the higher end of the company’s guidance range. With Dycom maintaining strong financial health (rated "GOOD" by InvestingPro’s comprehensive scoring system) and showing solid revenue growth of 10.37% in the last twelve months, the company appears well-positioned. Consequently, the earnings per share (EPS) forecast was also revised upward to $0.95 from $0.93.

The data analysis utilized by Raymond James included mapping snowfall data from the National Oceanic and Atmospheric Administration (NOAA) from November 1 through January 31. This information was overlaid onto a proprietary sample within a specific radius around 359 locations across the lower 48 states. These locations are considered to be a representative sample of Dycom’s extensive network of over 560 field offices.

To refine their estimates, Raymond James applied a proprietary regression equation. The firm’s detailed analysis led to the raised forecasts for Dycom’s fourth fiscal quarter revenue and EPS. The enhanced price target reflects the analyst’s expectation that the lower-than-average snowfall will likely result in better operating conditions for Dycom, supporting the company’s financial performance for the quarter.

In other recent news, Dycom Industries has made significant strides in its financial performance and leadership changes. The company reported robust growth for the third quarter of fiscal 2025, with revenues reaching $1.272 billion, marking a 12% increase from the prior period. Adjusted earnings per share were reported at $2.68, and Dycom’s adjusted EBITDA stood at $170.7 million, representing 13.4% of total revenue.

KeyBanc Capital Markets has reiterated its Overweight rating on Dycom shares, predicting a multi-year growth period driven by the Broadband Equity, Access, and Deployment (BEAD) program and the datacenter segment. This optimism is further reflected in the company’s Q4 expectations for total contract revenues to increase in the mid to high single digits.

Dycom Industries has also seen changes in its executive leadership, with Daniel S. Peyovich assuming the CEO role following the retirement of Steven E. Nielsen. Richard K. Sykes has succeeded Nielsen as the Chair of the Board. These recent developments highlight Dycom’s position for continued success in its market segments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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