Dycom price target raised to $295 from $255 at KeyBanc

KeyBanc raised the firm’s price target on Dycom (DY) to $295 from $255 and keeps an Overweight rating on the shares. The firm maintains Dycom as one of its top picks as it believes the company is in the early years of a multi-year telecom investment expansion cycle–led by private investments in fiber, federal and state funded rural broadband programs, and a datacenter led fiber build. As a telecom pureplay trading at 11.3-times 2027, KeyBanc does not believe that the longer than usual growth cycle is adequately reflected in the valuation. As such, it thinks Dycom remains a name to own given its national presence and scale in wireline construction allowing for strong revenue growth in coming year.