Dycom upgraded to Buy from Neutral at B. Riley

B. Riley upgraded Dycom to Buy from Neutral with a price target of $172, up from $101. Following six quarters of softening organic growth and previous concerns about financial performance during seasonally weaker months, this trend and seasonal risk is “poised to reverse,” the analyst tells investors in a research note. In addition, the firm expects capex by two of Dycom’s larger clients to rebound in the second half of 2024, wireless spending to improve over the intermediate-to-long term, and BEAD funding awards to develop in mid- to late-2024. As organic growth rebounds, the company should sees a continuation of improving profit margin expansion, says Riley.