KeyBanc Raises Dycom Price Target to $295, Maintains Overweight Rating

KeyBanc raised Dycom's price target to $295 from $255 and maintained an Overweight rating. The firm believes Dycom is in the early years of a multi-year telecom investment expansion cycle, driven by private investments in fiber, federal and state funded rural broadband programs, and datacenter-led fiber builds. KeyBanc thinks Dycom remains a name to own due to its national presence and scale in wireline construction.

KeyBanc has raised its price target for Dycom Industries (NYSE: DY) to $295 from $255, maintaining an Overweight rating on the telecommunications infrastructure company [1]. The stock is currently trading near its 52-week high of $255.65, having shown remarkable momentum with a 32% gain over the past six months [1]. KeyBanc 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 [1].

KeyBanc noted that Dycom, 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 [1]. 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 [1].

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 [1]. Analysts from JPMorgan, BofA Securities, and UBS have raised their price targets for Dycom, citing strong earnings and a positive outlook [1]. 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 [1]. DA Davidson also raised its price target to $265, maintaining a Buy rating, and highlighted Dycom’s elevated revenue and expanding margins [1].

Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy), outperforming its sector in the calendar year. Over the past 90 days, the Zacks Consensus Estimate for DY's full-year earnings has moved 17.1% higher. Based on the most recent data, DY has returned 43.8% so far this year, while stocks in the Construction group have gained about 3.2% on average [2]. This indicates improving analyst sentiment and a positive earnings outlook trend. Another stock in the Construction sector, Comfort Systems (FIX), has also outperformed the sector so far this year, with a year-to-date return of 25.9% [2].

AT&T Inc. (NYSE: T), a leading telecom company focused on 5G wireless, fiber broadband, and enterprise services, reported steady operational execution and ongoing transformation in its Q1 2025 results [3]. The company's revenue growth was driven by wireless service and fiber broadband, while earnings and margins improved. AT&T's focus on bundling fiber with wireless services and its strong position in enterprise clients are key strengths in the competitive U.S. telecom market.

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 [1].

References:
[1] https://www.investing.com/news/analyst-ratings/keybanc-raises-dycom-industries-stock-price-target-to-295-on-telecom-growth-93CH-4138110
[2] https://finance.yahoo.com/news/dycom-industries-dy-stock-outpacing-134004296.html
[3] https://www.mitrade.com/au/insights/news/live-news/article-8-959094-20250715