On Friday, KeyBanc Capital Markets maintained its Overweight rating on MasTec (NYSE:MTZ), a leading infrastructure construction company, with a steady price target of $153.00.
During a recent annual bus trip to South Florida, KeyBanc analysts met with MasTec’s CEO, Jose Mas, and CFO, Paul DiMarco. The discussions reaffirmed the analysts’ confidence in the company’s growth trajectory.
"We remain OW given the improved execution (evident in margin improvements) and potential for upward guidance revisions given the end market outlooks, and a multiple re-rate story as the execution track record develops," KeyBanc analysts said in their note.
MasTec is poised for revenue acceleration in 2025, alongside further margin enhancements. The company is entering the year with a strong backlog of projects, increased demand for electric distribution spending, and the commencement of several significant programs, including a substantial transmission program and capital expenditure builds for 5G and fiber, starting early in the year.
KeyBanc forecasts a 9% revenue growth and a 15% increase in EBITDA for MasTec in 2025. Despite the anticipated decline in the company’s most profitable segment, Oil & Gas (O&G), following the completion of the Mountain Valley Pipeline (MVP), the firm expects double-digit revenue growth and continued margin expansion across all segments in 2026.
The consensus estimates for the first quarter of 2025 and the full year appear achievable to KeyBanc. They anticipate that MasTec’s management will maintain a conservative outlook. The Overweight rating and price target of $153 are based on an 11.1x multiple of KeyBanc’s projected 2026 adjusted EBITDA for MasTec.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.