In a report released yesterday, Eric Luebchow from Wells Fargo maintained a Buy rating on Dycom (DY – Research Report), with a price target of $215.00.
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Eric Luebchow has given his Buy rating due to a combination of factors that suggest Dycom is poised for growth. The company is expected to surpass financial expectations for the first quarter and fiscal year 2026, driven by increasing fiber and AI data center developments. Despite a recent re-rating, Dycom’s stock is trading in line with historical averages and at a discount compared to its engineering and construction peers, which presents an attractive investment opportunity.
Furthermore, the fiber-to-the-home market is experiencing strong momentum, with major telecommunications companies planning to significantly increase their fiber buildouts. This expansion is expected to pass a record number of new homes with fiber this year, providing a robust pipeline for Dycom. Additionally, while the company’s guidance for the second quarter may appear conservative, the long-term outlook remains positive with anticipated growth in revenue and earnings, supported by accelerating customer projects and potential contributions from storm restoration work.
In another report released on May 14, Bank of America Securities also reiterated a Buy rating on the stock with a $210.00 price target.