Jefferies initiates MYR Group stock with Hold rating, $202 price target

Investing.com - Jefferies initiated coverage on {{16691|{{16691|{{16691|{{16691|{{16691|{{16691|{{16691|MYR Group}}}}}}}}}}}} (NASDAQ:MYRG)}} with a Hold rating and a price target of $202.00 on Friday. The electrical construction company, currently valued at $2.8 billion, has delivered impressive returns with a 77% gain over the past year. According to InvestingPro data, the stock is trading near its Fair Value, supporting Jefferies’ neutral stance.

The research firm described MYR Group as a small to mid-cap pure-play electrical engineering and construction company with core transmission and distribution alliances with utilities and diversified commercial and industrial customers, including data centers positioned for growth. InvestingPro analysis reveals the company maintains a Fair financial health score, with moderate debt levels and strong growth prospects, as evidenced by upward earnings revisions from analysts.

Jefferies noted that MYR Group’s margins have stabilized with potential upside following the wind-down of transmission and distribution utility-scale solar projects, while its conservative balance sheet offers financial flexibility.

The firm expects MYR Group to bid on transmission projects, citing the company’s established track record, and highlighted its data center exposure as "exciting" with recent commercial and industrial awards.

Jefferies believes the current share price already reflects the company’s strong fundamentals and outlook, stating they "seek a better entry-point" for the stock.

In other recent news, MYR Group reported a strong performance for the second quarter of 2025, surpassing earnings expectations with an earnings per share (EPS) of $1.70, compared to the forecasted $1.52. The company also exceeded revenue forecasts, posting $900 million against the expected $836.22 million. Stifel, a research firm, responded to these results by raising its price target for MYR Group to $210 from $204, while maintaining a Buy rating. Stifel highlighted the company’s strength in its Transmission & Distribution (T&D) segment, noting an 11% year-over-year revenue increase. This growth was even more significant, estimated at over 25%, when excluding challenges faced in the solar sector. These developments underscore MYR Group’s robust operational performance in the T&D sector. Despite the strong earnings, MYR Group’s stock experienced a decline of 2.86% during the regular session. However, it rebounded in premarket trading, showing a 7.3% increase.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.