BofA raises Dycom price target to $210, says pullback ‘overdone’

BofA analyst Alexander Waters raised the firm’s price target on Dycom (DY) to $210 from $204 and keeps a Buy rating on the shares. Dycom reported Q3 revenue and adjusted EBITDA that beat BofA and Street estimates, but Q4 guidance that came in below Street expectations drove underperformance throughout yesterday, the analyst noted. Investors were “generally surprised by the sharp stock move,” which the firm believes was a reflection of the strong pre-quarter positioning. The firm remains upbeat on the Dycom story and believes the stock reaction yesterday was “overdone,” the analyst added.