MasTec stock outlook remains positive as UBS reiterates Buy rating

Investing.com - UBS has reiterated its Buy rating and $206.00 price target on MasTec (NYSE:MTZ), reflecting continued confidence in the construction services company’s growth prospects. The stock, currently trading at $195.90, has delivered impressive returns with a 41% gain year-to-date and sits near its 52-week high. According to InvestingPro data, the company appears slightly overvalued at current levels.

The investment firm noted that MasTec management expressed a "very bullish outlook" regarding the growth trajectory across all business segments, with expectations for margin improvement throughout the company’s operations. This optimism is supported by analysts, with 8 recently revising their earnings estimates upward and revenue growth forecast at 14% for FY2025.

According to UBS, MasTec’s CEO sees multiple paths to achieving revenue growth and margin expansion, even in scenarios where not everything proceeds according to plan.

In the renewables sector specifically, MasTec’s CEO cited strong visibility extending to 2030, suggesting sustained long-term opportunities in this business segment.

UBS also reported that management believes customer development plans, particularly among top-tier developers, are unlikely to be affected by policy changes, noting that client behavior has remained consistent both before and after relevant executive orders.

In other recent news, MasTec has been the subject of several analyst upgrades and ratings. Wolfe Research upgraded MasTec to "Outperform," citing an anticipated inflection point in gas infrastructure spending and growth drivers such as data center expansion. Mizuho also initiated coverage with an "Outperform" rating, highlighting MasTec’s significant revenue from clean energy and power delivery, which is expected to grow substantially by 2025. Texas Capital Securities started coverage with a "Buy" rating, noting MasTec’s strong position as a major utility infrastructure contractor. KeyBanc reiterated its "Overweight" rating, emphasizing the company’s early stages of a growth story with multiple expansion opportunities.

In addition to analyst activity, MasTec announced a temporary blackout period for its 401(k) plan participants due to a transition in recordkeeper services. The blackout period will affect various transactions and is scheduled to begin in September 2025, concluding in October 2025. These recent developments indicate a period of strategic transitions and growth expectations for MasTec.

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