Gold prices hold sharp gains as soft US jobs data fuels Fed rate cut bets
On Wednesday, Stifel analysts revised the price target for MYR Group (NASDAQ:MYRG), a leading specialty contractor serving the electrical infrastructure market. The new price target is set at $131.00, down from the previous $157.00, while the firm maintains a Buy rating on the stock. The revision comes as MYRG shares have declined 14.86% in the past week, with the stock currently trading at $101.85. According to InvestingPro data, analyst targets for the stock range from $124 to $164.
The adjustment comes with a perspective on the company's future, particularly focusing on the Transmission & Distribution (T&D) segment. Stifel's analysts have gathered survey results which they believe indicate support for high single-digit top-line growth in this segment for the year 2025. This is despite an anticipated headwind due to a projected minimal number of solar bookings in 2024, which could represent a roughly $190 million challenge.
The analysts anticipate that the completion of challenging projects by the end of 2024 could pave the way for significantly improved margin performance in 2025. This expected turnaround is seen as a positive driver for the company's financial health and stock valuation.
Nevertheless, the analysts also noted potential risks that could impact the demand and margin outlook for MYR Group's Commercial & Industrial (C&I) segment. Approximately 80% of the C&I work is conducted under fixed-price contracts, which could be susceptible to cost fluctuations due to tariffs.
Stifel's maintained Buy rating reflects their overall positive stance on MYR Group's stock despite the reduced price target. The firm's analysis suggests confidence in the company's ability to navigate the upcoming challenges and capitalize on the growth opportunities in the T&D segment. The revised price target takes into account both the potential headwinds and the strategic completion of difficult projects, which are expected to contribute to MYR Group's performance in the near future.
In other recent news, MYR Group has been the focus of several analyst updates. Stifel analysts revised their price target for MYR Group to $131 from $157, maintaining a Buy rating despite anticipated challenges in solar bookings and potential tariff impacts. They expect high single-digit growth in the Transmission & Distribution segment by 2025, with improved margins following the completion of current projects. In contrast, KeyBanc Capital Markets upgraded MYR Group's rating to Overweight, setting a new price target of $136. This upgrade was based on the company's improved revenue and margin growth trajectory after resolving execution challenges in 2024.
Additionally, Kansas City Capital raised MYR Group's rating to Outperform, citing the company's strategic role in the energy transition and improved profitability in late 2024. They set a 12-18 month price target of $143, highlighting a 16% upside potential. These recent developments reflect a varied yet optimistic outlook from analysts, focusing on MYR Group's potential in the evolving energy sector. Investors are likely to watch closely as the company navigates these opportunities and challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.