Here’s What KeyBanc Thinks About Dycom Industries (DY)

​Dycom Industries, Inc. (NYSE:DY) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 12, Steven Fisher from UBS reiterated a Buy rating on the stock and raised the price target from $373 to $400. Earlier on January 7, Sangita Jain from KeyBanc reiterated a Buy rating on Dycom Industries, Inc. (NYSE:DY) and also raised the price target from $392 to $426.

​Analysts at KeyBanc noted that the stock remains one of their top picks, and the higher price target reflects the company’s improved margins and growth outlook. The firm highlighted that the company still remains in the early stages of its investment cycle to expand its presence in the telecom sector. Dycom aims to grow its fiber-to-the-home segment, revive its BEAD program, and invest in upcoming data center fiber initiatives.

The firm also noted the recent acquisition of Power Solutions by Dycom Industries, Inc. (NYSE:DY). It believes that this strategic step addresses several concerns regarding the company’s long-term potential. KeyBanc expects the company to continue acquiring and merging with other companies to expand its presence in the electrical space and diversify its revenue sources.

​Dycom Industries, Inc. (NYSE:DY) provides specialty contracting services to telecommunications infrastructure and utility industries across the United States. These services encompass program management, engineering, aerial and underground construction, maintenance, wireless network deployment, and fulfillment for telecom providers.

While we acknowledge the potential of DY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DY and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.