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On Wednesday, Stifel analysts increased the price target for MasTec (NYSE:MTZ) shares to $185 from the previous target of $155, while maintaining a Buy rating on the stock. The adjustment reflects the analysts' optimism about the company's future, particularly regarding the Power Delivery segment's potential in 2025. According to InvestingPro data, MTZ has shown remarkable momentum, delivering a 148.55% return over the past year and currently trades near its 52-week high of $161.05.
The analysts at Stifel anticipate significant upside potential for MasTec's Power Delivery expectations in 2025, primarily due to the development of a substantial transmission project named Greenlink. They estimate that Greenlink could contribute approximately $400 million to the company's revenue in 2025, adding to MasTec's already substantial annual revenue of $12.18 billion. Additionally, the analysts expect MasTec to benefit from favorable comparisons following an unexpected rate case ruling in Illinois that affected a major customer, Exelon (NASDAQ:EXC), in 2024. The rate case was subsequently refiled and approved with modifications in late 2024, which is likely to positively impact the company's performance.
In the pipelines sector, MasTec seems to have secured a significant portion of new business, having been recently awarded four of the eight spreads on the approximately 550-mile Bahia NGL pipeline. This development is viewed as further support for MasTec's positive outlook in 2025.
MasTec, a leading infrastructure construction company, is involved in various segments, including Power Delivery and pipelines, which are critical to its growth strategy. The company's stock price target increase by Stifel reflects confidence in MasTec's ability to capitalize on upcoming projects and navigate the regulatory environment effectively.
Investors and market watchers are keeping a close eye on MasTec's progress, as the company's strategic projects such as Greenlink and the Bahia NGL pipeline are expected to drive its growth in the coming years. The revised price target by Stifel signals a strong belief in the company's prospects and its ability to deliver on its potential. InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score, with analysts setting price targets ranging from $108 to $195. For deeper insights into MTZ's valuation and growth prospects, including 18 additional ProTips and comprehensive financial metrics, check out the full Pro Research Report available on InvestingPro.
In other recent news, infrastructure construction company MasTec has been the subject of several analyst upgrades and positive forecasts. KeyBanc Capital Markets maintained its Overweight rating on MasTec, citing improved execution and a potential for upward guidance revisions. They forecast a 9% revenue growth and a 15% increase in EBITDA for MasTec in 2025. Truist Securities also maintained a positive outlook, reiterating a Buy rating and seeing a 29% upside potential. They highlighted MasTec's healthy margins and above-average earnings visibility leading into 2025.
Truist Securities later upgraded MasTec stock to a Buy rating and raised the price target to $173. This upgrade comes after assessing the company's performance and potential growth within its various business segments. TD Cowen and DA Davidson also raised their price targets for MasTec to $160, maintaining a Buy rating, while Baird adjusted its price target to $153, retaining a Neutral rating.
These recent developments reflect the analysts' confidence in MasTec's future performance, driven by its consistent margin improvement, cash generation, and strong presence in high growth markets. The company is also exploring merger and acquisition opportunities, indicating potential for sustained growth.
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