Here's What KeyBanc Thinks About Dycom Industries (DY)

​Dycom Industries, Inc. (NYSE:DY) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 12, Steven Fisher from UBS reiterated a Buy rating on the stock and raised the price target from $373 to $400. Earlier on January 7, Sangita Jain from KeyBanc reiterated a Buy rating on Dycom Industries, Inc. (NYSE:DY) and also raised the price target from $392 to $426.

​Analysts at KeyBanc noted that the stock remains one of their top picks, and the higher price target reflects the company’s improved margins and growth outlook. The firm highlighted that the company still remains in the early stages of its investment cycle to expand its presence in the telecom sector. Dycom aims to grow its fiber-to-the-home segment, revive its BEAD program, and invest in upcoming data center fiber initiatives.

The firm also noted the recent acquisition of Power Solutions by Dycom Industries, Inc. (NYSE:DY). It believes that this strategic step addresses several concerns regarding the company’s long-term potential. KeyBanc expects the company to continue acquiring and merging with other companies to expand its presence in the electrical space and diversify its revenue sources.

​Dycom Industries, Inc. (NYSE:DY) provides specialty contracting services to telecommunications infrastructure and utility industries across the United States. These services encompass program management, engineering, aerial and underground construction, maintenance, wireless network deployment, and fulfillment for telecom providers.

While we acknowledge the potential of DY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.