FBR Capital Reiterates an 'Outperform/Top Pick' on Dycom Industries (DY); First Look at F3Q Upside

FBR Capital reiterates an 'Outperform/Top Pick' on Dycom Industries (NYSE: DY).

FBR analyst says, "Last night after the close, Dycom Industries announced solid F3Q results with an earnings upside excluding one-time items. In addition, backlog and guidance released in its slide deck this morning on the company website reconfirms organic revenue growth is accelerating with total backlog up 34% YOY and 12-month backlog up 17% YOY. The shares of Dycom continue to offer investors significant upside potential and a vehicle to participate in the broad rebound in telecom capex at a more attractive valuation than its historical multiple. F3Q results confirm to us that Dycom is at the beginning of a multiyear up-cycle in telecom capex, witnessing increasing growth prospects from: (1) wireless, wireline, and cable operators investing in fiber to the cell tower; (2) wireless carrier capex increase for 4G upgrades; (3) rural broadband, (4) telco consolidation and asset swaps leading to a pickup in capex, (5) a slow but positive pickup in the housing market; and (6) the expectation for improving maintenance capex."

For more ratings news on Dycom Industries click here and for the rating history of Dycom Industries click here.

Shares of Dycom Industries closed at $14.34 yesterday.

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