Dycom price target lowered to $120 from $130 at Wells Fargo

Wells Fargo analyst Eric Luebchow lowered the firm’s price target on Dycom (DY) to $120 from $130 and keeps an Overweight rating on the shares. The analyst sees continued upside potential in Dycom heading into Q3 earnings, with double-digit revenue growth supplemented by more meaningful margin expansion in the second half of 2022. Several possible catalysts are also not reflected in estimates, including a potential $10B-$15B fiber JV with AT&T (T); and government-subsidized infrastructure funding, which should become more material in 2023, he argues. Luebchow is slightly trimmed his EPS estimates to account for a slower-than-expected fiber deployment at Lumen (LUMN) + higher interest rates.