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Investing.com - Stifel raised its price target on MasTec (NYSE:MTZ) to $198.00 from $181.00 on Monday, maintaining a Buy rating following the company’s second-quarter performance. The infrastructure construction company, currently valued at $13.8 billion, has seen its stock surge 70% over the past year, according to InvestingPro data.
The infrastructure construction company reported second-quarter results that largely exceeded expectations, with management broadly raising its 2025 guidance. Third-quarter guidance also came in above market expectations. With annual revenue reaching $13 billion and four analysts recently revising earnings estimates upward, MasTec shows strong momentum despite operating with relatively thin gross margins of 12.6%.
Despite these positive developments, MasTec stock faced pressure due to softer-than-expected new awards in its Pipeline segment, which reached $466 million versus consensus estimates of $584 million. The market reaction also reflected concerns about the Pipeline segment’s lower-than-anticipated second-quarter margin of 11.5% compared to expectations of 13.4%.
Stifel noted that Pipeline margins were impacted by investments to support future growth, including significant hiring activity that increased headcount by approximately 13% sequentially. The firm believes these investments position MasTec for the upcoming Pipeline segment growth cycle.
The investment bank views the stock’s recent dip as a buying opportunity, citing verbal Pipeline awards expected to be signed soon and underlying activity potentially supporting a return to prior peak Pipeline revenue of approximately $3.5 billion during this cycle. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ stocks, MasTec is currently trading near its calculated Fair Value, with analysts maintaining a strong buy consensus and projecting further earnings growth this year.
In other recent news, MasTec Inc . reported impressive financial results for the second quarter of 2025. The company exceeded analyst expectations with an earnings per share (EPS) of $1.49, surpassing the forecast of $1.40. Additionally, MasTec’s revenue reached $3.54 billion, outpacing projections of $3.4 billion. Following this strong performance, the company raised its 2025 guidance by more than the earnings beat. In response to these developments, KeyBanc increased its price target for MasTec from $196 to $205, while maintaining an Overweight rating. These updates highlight the company’s robust financial health and optimistic future outlook, as indicated by KeyBanc’s revised price target. Despite the positive financial results, MasTec’s stock experienced a decline, which might be attributed to broader market trends or specific company challenges. These developments reflect recent progress and adjustments in the company’s financial strategy and market position.
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