We increase our price target to $28 from $24, as we become more constructive on our growth projections and valuation for Daktronics. DAKT reported solid 2Q:F26 results that beat our expectations and strong growth in backlog and orders, which should support management's longer-term targets. The company expects its new Mexican facility to be in production in April 2026. Management maintained its expectations of revenue to grow faster than the overall market at 7%-10%, with an operating margin of 10%-12% and a return on invested capital (ROIC) of 17%-20% by F2028. The company also announced Ramesh Jayaraman as president and CEO, effective February 1, 2026. He is also expected to join the Board as a director. We believe Mr. Jayaraman possesses the experience to lead DAKT's transformational journey. The company has made strides in its transformation, and the results are already starting to show. We expect DAKT to reap the benefits with better software systems and improved pricing, reflecting DAKT's strong value proposition. DAKT remains cash flow positive and ended 2Q:F26 with $150 million in cash. Our new $28 price target (from $24) is based on 22x (was 24x) our F2027 EPS estimate of $1.25 (was $1.24). The company's trajectory for sustained profitability, solid balance sheet and expanded cash flow support our moderate risk rating. Management will participate in the Sidoti Virtual Conference on January 21-22; you may find more information here. An investor day is planned for April 2026.