Dycom’s Strong Financial Performance and Growth Potential: A Buy Recommendation by Alexander Waters

Alexander Waters, an analyst from Bank of America Securities, reiterated the Buy rating on Dycom (DY – Research Report). The associated price target was raised to $250.00.

Alexander Waters has given his Buy rating due to a combination of factors that highlight Dycom’s strong financial performance and growth potential. Dycom’s first-quarter results for fiscal year 2026 exceeded expectations, partly due to the significant revenue contribution from their acquisition of Black and Veatch in 2024. Additionally, Dycom has raised its revenue guidance for fiscal year 2026, surpassing market expectations, and remains well-positioned to benefit from several long-term growth opportunities.
These opportunities include traditional telecom and cable wireline projects, emerging data center and BEAD initiatives, and wireless network expansions, all supported by Dycom’s extensive maintenance program. The company’s strategic acquisition of Black and Veatch’s wireless business is expected to outperform initial projections, particularly through its exposure to AT&T’s network optimization efforts. Furthermore, Dycom has secured substantial multi-year fiber build contracts, which promise to enhance revenue streams in the coming years. These factors collectively justify the increased price objective of $250 and reinforce Dycom as a top SMID cap pick for 2025.

In another report released yesterday, UBS also maintained a Buy rating on the stock with a $258.00 price target.

DY’s price has also changed moderately for the past six months – from $180.300 to $224.210, which is a 24.35% increase.