Dycom Industries (DY) PT Raised to $200 at DA Davidson

DA Davidson analyst Brent Thielman raised the price target on Dycom Industries (NYSE: DY) to $200.00 (from $160.00) while maintaining a Buy rating.

The analyst comments "PT increases to $200 - considerable momentum/earnings power still to be observed. We are raising our estimates and PT to $200 (prev. $160) or 12x/10x our F25/F26 EBITDA estimates, respectively (23x/22x F25/F26 EPS). Historically, these shares have traded in a range of 4x-15x FY+1 EBITDA (EPS typically in a range of 7x-30x). With solid prospects for organic growth reacceleration going forward, further evidence of margin improvement and wider customer spending overall; future earnings leverage/power should only be enhanced. Our earnings potential template is attached, applying historical margins and compounds growth rates. We do see earnings potential in excess of $11/sh (applying these basic/historical assumptions) provided customer momentum continues. A combination of broadening rural buildout plans, future benefits of additional Federal subsidies and increased data usage/consumption all appear to be favorable drivers."

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