BofA starts Dycom with a Buy, sees 40% potential upside

As previously reported, BofA analyst Alexander Waters initiated coverage of Dycom with a Buy rating and $120 price target, implying about 40% potential upside. The specialty services contractor offering construction, engineering, installation, and maintenance services enjoys a strong infrastructure project backlog, is well positioned to monetize incremental telecom and cable company wireline buildouts and has “a big opportunity” to capture a portion of the forthcoming $42B of BEAD funding allocated to develop broadband access in unserved and underserved communities as part of the Biden Infrastructure bill passed in 2022, the analyst tells investors.