Dycom Industries Sustainable Multi-Year Growth Drivers with Solid Backlog and Building Pipeline of Business; Strong Margin Performance; PT to $650

Research evidence excerpt

Dycom Industries Sustainable Multi-Year Growth Drivers with Solid Backlog and Building Pipeline of Business; Strong Margin Performance; PT to $650

Richard Choe AC North America Equity Research

(1-212) 622-6708 28 May 2026 J P M O R G A N

richard.choe@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We see the company benefitting from network upgrade trends

across the wireline and wireless landscape, with some builds

taking multiple years before completion. On the wireline side,

fiber-to-the-home deployments look to provide meaningful

long-term growth, as network operators plan to increase

penetration from 56% today to over 75% by the end of 2027. In

addition, recent advancements in artificial intelligence have

spurred investment in data centers and generated a need for

increased bandwidth alongside existing routes, and for new fiber

YTD 1m 3m 12m routes. The acquisition of Power Solutions expands Dycom into

Abs 24.4% 2.4% -0.0% 86.7% a new vertical, offering electrical contracting services to data

Rel 6.7% -2.4% -9.1% 47.0%

center customers, which has substantial growth and high

Company Data margins. The deal allows Dycom to offer a more comprehensive

Shares O/S (mn) 30 solution set and deepen existing customer relationships. The

52-week range ($) 464.82-223.19 acquisition of National Technology Integrators adds to the

Market cap ($ mn) 12,602.48

Exchange rate 1.00 company’s growing portfolio of services geared to data center

Free float (%) 98.6% developers.

3M ADV (mn) 0.44

3M ADV ($ mn) 171.4 Valuation

Volatility (90 Day) 47 Our main valuation methodology is based on a discounted cash

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 11|0|0 flow analysis. We reiterate our Overweight rating and raise our