UPDATE: Stifel Nicolaus Initiates Buy, $30 PT on Dycom Industries; Strong Growth Outlook at a Good Value

Stifel Nicolaus says in a recent note that it initiates its coverage on Dycom Industries

with a Buy rating and a price target of $30 per share. Stifel Nicolaus says, "We forecast a solid three-year sales CAGR of 8.5%. Dycom is experiencing sales and backlog momentum. Organic revenue was up 15.2% y/y in F1Q12 and 19.2% in F2Q12. NTM backlog is up 32% y/y. …Our one-year target price of $30.00 offers 37.4% upside and is based on multiples that are below historical averages. The company is currently trading at multiples below historical averages." DY closed at $21.84 on Thursday.