Raymond James cuts Dycom Industries stock price target on guidance concerns

Raymond James revised its price target on Dycom Industries stock due to concerns over guidance. The investment firm lowered the target from $610 to $375, while keeping the Strong Buy rating intact. Dycom's Q2 2027 results showed strong growth, but the company's guidance and communication about wireless project delays influenced the adjustment.

The stock is currently trading at $295.49, down 48% from its 52-week high of $566.47. Raymond James stated that fixed and mobile convergence is a priority for carriers, and the telecom and data center industries are advancing capital projects, including new long-haul fiber networks. Dycom is well-positioned to benefit from fiber-to-the-home deployments, copper decommissioning, AI fiber builds, and data center construction and upgrades.

The company's revenue increased by 38% in the past year, and InvestingPro analysis suggests the stock is undervalued relative to its Fair Value. Raymond James expects tax loss selling to impact trading over the next 30-45 days into October. Despite strong Q2 results, Dycom's stock price dropped 10.21% in premarket trading following a revised full-year outlook.

Other firms, such as Cantor Fitzgerald, have also lowered the price target for Dycom Industries, citing concerns over guidance. Raymond James remains optimistic, highlighting the company's backlog expansion and new long-haul customers.