Dycom price target raised to $179 from $169 at KeyBanc

KeyBanc raised the firm’s price target on Dycom to $179 from $169 and keeps an Overweight rating on the shares. The firm notes Dycom reported stronger than expected revenue growth in Q1 as organic growth turned positive, but even more significant was the Q2 guide for high-single-digit organic growth and continued margin expansion. KeyBanc believes that there is meaningful runway for revenue and margins as telcos maintain focus on fiber expansions through their own capex or JVs. Impending federal funding from the BEAD program extends the duration of growth, in the firm’s view.