KeyBanc Raises Dycom Industries (DY) Price Target to $295 on Telecom Growth

Dycom Industries, Inc. (NYSE:DY) is one of the best Russell 2000 stocks to buy now. On July 16, KeyBanc Capital Markets increased its price target for Dycom stock to $295, up from $255. The firm maintained its “Overweight” rating on Dycom’s shares, citing the company’s strong sector positioning and the expectation that telecom infrastructure investments will remain high in the years to come.

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Specifically, KeyBanc highlighted Dycom’s position at the start of a multi-year telecom investment expansion. Dycom, the analysts stated, has made robust private investments in fiber. Add to that the ongoing federal and state-funded rural broadband programs, as well as aggressive data center-led fiber builds. KeyBanc expects these initiatives to drive elevated spending in the industry for several years.

The analysts also noted Dycom’s national reach and scale in wireline construction. They stated that this fact gives the company an advantage in competing for contracts and capturing incremental growth opportunities. In that regard, 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 fully reflected in its current valuation.

Dycom Industries, Inc. (NYSE:DY) is a specialty contracting company. It provides engineering, construction, maintenance, and installation services for telecommunications and utility infrastructure. The company operates across the United States, serving major telecommunications providers, cable operators, and utility companies through a network of field offices staffed by over 15,000 employees.

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