I have a DummyResource class and a DummyTarget file, and a test class TestDummyResource as below, but the mocked object DummyResource dr = mock(DummyResource.class)
Actually, you have to prepare for test the class that makes the constructor call, not the class on which the constructor was called. See https://github.com/jayway/powermock/wiki/MockConstructor.
In your case, you should use @PrepareForTest(DummyTarget.class)