Stifel raises MasTec stock target to $171, maintains buy rating

Published 05/05/2025, 15:18
Stifel raises MasTec stock target to $171, maintains buy rating

On Monday, Stifel analysts increased their price target on MasTec stock (NYSE:MTZ) to $171 from the previous $143 while retaining a Buy rating on the shares. According to InvestingPro data, analyst targets for MasTec range from $128 to $200, with three analysts recently revising their earnings expectations upward. The stock, currently trading at $143.82, has demonstrated strong momentum with an 11.65% gain in the past week. The adjustment follows MasTec’s first-quarter results for 2025, which surpassed analyst expectations, particularly due to significant developments within the Communications sector. This success is believed to be largely attributable to ramping up of substantial awards from AT&T.

MasTec’s backlog saw a year-over-year increase of 24%, with implied orders jumping by 42%. Notably, the pipeline backlog doubled on a sequential basis. The company’s financial health is rated as GOOD by InvestingPro, with revenue reaching $12.46 billion in the last twelve months and a solid Altman Z-Score of 4.13, indicating strong financial stability. Stifel’s analysis suggests that five of eight spreads from Hugh Brinson, which were not added to the first-quarter backlog, are anticipated to be awarded in a future quarter. This expectation aligns with predictions that the pipeline backlog will continue to expand throughout 2025, supporting the company’s reaffirmed revenue projection of over $2.1 billion for 2026.

Despite the prevailing uncertainties in the clean energy sector, stemming from tariffs and the Impact Reduction Act (IRA), MasTec has conveyed a sense of confidence. This confidence is underpinned by alliance agreements with major customers. The company is forecasting a growth rate of 20-25% in the clean energy sector for the rest of the year and anticipates the potential for second-quarter bookings to outpace the robust levels seen in the first quarter.

In light of these developments, MasTec has raised its guidance for 2025, primarily due to heightened revenue expectations in the Communications and Pipeline segments. InvestingPro analysis shows the company’s net income is expected to grow this year, with EPS forecasts for 2025 at $5.93. For deeper insights into MasTec’s financial outlook and access to 10+ additional ProTips, consider exploring InvestingPro’s comprehensive research report. The company’s second-quarter guidance for revenue, specifically in Communications, has exceeded predictions, although the forecast for adjusted EBITDA remains consistent with prior expectations.

In other recent news, MasTec Inc . reported impressive financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.51, significantly higher than the projected $0.34, and reported revenue of $2.85 billion, exceeding the forecasted $2.71 billion. MasTec also raised its full-year 2025 revenue guidance to $13.65 billion, reflecting confidence in its growth prospects. Analysts from KeyBanc Capital Markets and Truist Securities expressed optimism about the company’s future, noting its strong backlog and potential in the pipeline and communications sectors. Furthermore, MasTec’s communications segment saw a 35% year-over-year revenue increase, driven by robust demand in telecom infrastructure. The company’s power delivery and clean energy segments also reported double-digit revenue growth, with expectations for continued expansion. These developments underscore MasTec’s strategic positioning and operational efficiency in the infrastructure and energy services markets.

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