MasTec stock price target cut to $175 at Stifel, retains Buy rating

Published 03/03/2025, 16:12
MasTec stock price target cut to $175 at Stifel, retains Buy rating

On Monday, Stifel analysts announced a revised price target on MasTec (NYSE:MTZ) shares, lowering it to $175 from the previous $185, while still maintaining a Buy rating on the stock. According to InvestingPro data, MasTec is currently trading slightly below its Fair Value, with analyst targets ranging from $108 to $200, suggesting significant potential upside. The company’s fourth quarter of 2024 results surpassed expectations, particularly due to strong margin performance in its Communications, Energy, and Infrastructure (CE&I) segment. MasTec also experienced a year-over-year backlog increase of 15% and a 21% rise in implied orders, with notable strength in Power Delivery, likely influenced by a favorable rate case outcome with Exelon (NASDAQ:EXC).

Stifel’s analysis highlighted MasTec’s initial guidance for 2025, which exceeded analyst forecasts in all categories. However, the first quarter guidance for 2025 was slightly below expectations, which the company attributed to weather-related impacts. Furthermore, MasTec’s projection of Pipeline revenue exceeding $2.1 billion for 2026 is significantly above expectations, a positive indicator for margin mix and a supportive element for the outlook into the next year.

Stifel analysts remain optimistic about MasTec, citing several factors that contribute to their positive outlook. These include improving pipeline demand, better Days Sales Outstanding (DSOs) leading to enhanced cash flow generation, a turnaround in execution reflected in the margin performance of the CE&I segment, and backlog growth that indicates a robust demand environment. Based on these observations, MasTec continues to be one of Stifel’s top picks for 2025.

In other recent news, MasTec Inc . reported a strong performance in Q4 2024, with adjusted earnings per share (EPS) of $1.44, surpassing analyst forecasts of $1.23. The company’s revenue for the quarter reached $3.4 billion, exceeding expectations of $3.32 billion. MasTec also achieved a 20% year-over-year increase in adjusted EBITDA, reaching $271 million. Analysts noted significant growth in the communications and power delivery segments, with respective revenue increases of 28% and 16% year-over-year. The company projects 2025 revenue of $13.45 billion, with adjusted EPS anticipated between $5.35 and $5.84. MasTec’s full-year 2024 revenue was $12.3 billion, with an adjusted EPS of $3.95, reflecting the company’s trend of exceeding market expectations. Additionally, the company successfully reduced its net debt by over $700 million in 2024. Despite these positive developments, MasTec’s stock experienced a 1.3% decline in after-hours trading, which may reflect broader market trends.

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

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