Jefferies starts MasTec stock with buy, sets $188 target

On Friday, Jefferies initiated coverage on MasTec stock, traded on the New York Stock Exchange under the ticker (NYSE:MTZ), with a Buy rating and set a price target of $188.00. The move comes as the firm recognizes MasTec’s diversified presence in various high-growth sectors and its strategic customer partnerships. According to InvestingPro data, MasTec, with its $12.08 billion market capitalization, is currently trading near its 52-week high of $166.94, reflecting strong market confidence.

The firm’s analyst, Julian Dumoulin-Smith, highlighted MasTec’s expansive operations, which span clean energy, utility infrastructure, transmission, communications, and energy pipeline services. Dumoulin-Smith’s positive outlook is based on the company’s ability to grow and expand margins in these areas. The company generated impressive revenues of $12.46 billion in the last twelve months, with a revenue growth of 3.03%.

MasTec’s recent efforts to integrate acquisitions and strengthen its balance sheet were also noted as factors contributing to the company’s improved operational performance. The analyst expressed confidence in MasTec’s skilled labor force and its capability to capitalize on the opportunities provided by the current market environment. InvestingPro analysis shows the stock has delivered a strong year-to-date return of 14.3%, while six analysts have recently revised their earnings estimates upward. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

Jefferies sees a favorable risk/reward scenario for MasTec, considering it an Engineering and Construction (E&C) company with the right assets in the right markets. This endorsement by Jefferies reflects the firm’s bullish stance on MasTec’s growth prospects and its strategic positioning within the industry.

Investors in MasTec can now look to Jefferies’ analysis as a vote of confidence in the company’s direction and potential for future success. The $188 price target suggests a significant upside from the current trading levels, indicating the analyst’s expectation for strong performance from the stock.

In other recent news, MasTec Inc . reported impressive first-quarter 2025 results, surpassing Wall Street expectations for both earnings and revenue. The company achieved an earnings per share of $0.51, exceeding the forecasted $0.34, while revenue reached $2.85 billion, outpacing the anticipated $2.71 billion. Following these results, MasTec raised its full-year 2025 revenue guidance to $13.65 billion. Analyst firms Truist Securities and Stifel maintained their Buy ratings on MasTec, with price targets of $184 and $171, respectively, reflecting confidence in the company’s strategic direction and growth prospects.

MasTec’s first-quarter performance was bolstered by significant developments in the Communications sector, largely due to substantial awards from AT&T. The company’s backlog saw a year-over-year increase of 24%, with pipeline backlog doubling sequentially. MasTec also highlighted its strategic focus on diversifying its business, reducing reliance on its pipeline segment, and capitalizing on Broadband Equity, Access, and Deployment (BEAD) funding expected to drive growth from 2026 onwards.

Despite uncertainties in the clean energy sector, MasTec forecasts a growth rate of 20-25% for the rest of the year, supported by alliance agreements with major customers. The company anticipates its clean energy and infrastructure segment to see continued strong demand. MasTec’s strategic focus on infrastructure and energy services, alongside its diversified portfolio, has positioned it well for future growth, with a robust 18-month backlog of $15.9 billion supporting its outlook.

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