MasTec (MTZ – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on May 3. Analyst Andrew Kaplowitz from Citi maintained a Buy rating on the stock and has a $118.00 price target.
Andrew Kaplowitz has given his Buy rating due to a combination of factors impacting MasTec’s performance and outlook. Kaplowitz recognizes that MasTec has been making strides towards a strategy of “under-promising and over-delivering,” which is anticipated to enhance the confidence of investors, especially after a period of perceived underperformance. The company’s improvement in execution and favorable demand dynamics across its key markets contribute to the positive forecast for MasTec. Even though there’s an expectation for a significant increase in earnings in the second half of the year, the overall raised guidance for 2024 and the supportive market conditions bolster the case for the Buy rating.
Furthermore, the report outlines that MasTec has a solid backlog of projects valued at approximately $12.8 billion, which Kaplowitz believes offers a clear visibility for growth. Investments, specifically in data centers, are expected to drive further project activity. Despite potential concerns regarding regulatory issues and interest rates, the secular trends and fiscal support for MasTec’s market segments are likely to favor the company’s project bookings and backlog. In light of MasTec’s first-quarter performance and updated fiscal year 2024 guidance, Kaplowitz has adjusted the EBITDA estimates upward and increased the price target for MasTec’s stock, reinforcing his confidence in the company’s potential for robust earnings growth going forward.
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MasTec (MTZ) Company Description:
MasTec, Inc. engages in the provision of infrastructure construction services. It operates through the following segments: Communications; Oil and Gas; Electrical Transmissions; Power Generation and Industrial; and Other. The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications, and install-to-the-home customers. The Oil and Gas segment offers services on oil and natural gas pipelines and processing facilities for the energy, and utilities industries. The Electrical Transmission segment deals with the energy and utility industries. The Power Generation and Industrial segment covers energy, utility and other end-markets through the installation and construction of conventional and renewable power facilities. The Other segment comprises of equity investees, other small business units that perform construction, and other services for a variety of international end-markets. The company was founded by Jorge Mas Canosa in 1994 and is headquartered in Coral Gables, FL.
