Street Calls of the Week
Investing.com - Jefferies raised its price target on MYR Group (NASDAQ:MYRG) to $221.00 from $202.00 on Thursday, while maintaining a Hold rating on the stock. According to InvestingPro data, MYRG trades at a P/E ratio of 42.7x and has demonstrated strong financial health with an overall "GOOD" rating.
The firm cited utility transmission and distribution capital expenditure tailwinds and commercial and industrial end-market strength, including data centers, as key factors supporting the price target increase. The company’s strong positioning is reflected in its impressive 76.6% return over the past year and nearly 80% gain in the last six months.
Jefferies noted that while no specific awards are expected with the third-quarter results, there has been steady activity of new projects disclosed year-to-date, with margins firmly within ranges and opportunities for expansion through fiscal year 2028.
The firm considers large project awards exceeding $100 million as potential upside, particularly in transmission and data centers, and has lowered estimates to more accurately reflect ex-solar transmission and distribution fiscal year 2025 year-over-year top-line dynamics.
Despite the higher price target, which Jefferies attributed to peer multiple expansion, the firm reiterated its Hold rating on MYR Group stock based on current valuation. With earnings scheduled for October 22nd, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.
In other recent news, MYR Group reported strong financial results 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 outperformed revenue projections, posting $900 million against the anticipated $836.22 million. Following these results, Stifel raised its price target for MYR Group to $210, citing the company’s robust performance in its Transmission & Distribution segment, which saw an 11% year-over-year revenue increase. In another development, KeyBanc downgraded MYR Group’s stock rating from Overweight to Sector Weight, indicating that the shares are now considered fairly valued. Meanwhile, Jefferies initiated coverage on MYR Group with a Hold rating and set a price target of $202. Additionally, MYR Group appointed Aurelie Richard to its Board of Directors, where she will also serve on the Audit Committee. These updates reflect the company’s ongoing strategic and financial activities in the market.
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