Street Calls of the Week
Investing.com - Stifel raised its price target on MYR Group (NASDAQ:MYRG) to $226.00 from $210.00 on Thursday, while maintaining a Buy rating on the electrical contractor’s stock. The company has shown impressive momentum, delivering a 76.56% return over the past year. According to InvestingPro data, MYRG currently trades at a premium to its Fair Value.
The research firm cited positive long-term outlooks for transmission and distribution (T&D) and renewables installations, which are key end markets for MYR Group .
Stifel expects healthy growth for cost-competitive renewables driven by significant fiscal stimulus from the Inflation Reduction Act (IRA), while T&D growth should continue steadily due to grid hardening and modernization efforts supporting renewable energy adoption.
The firm noted that while commercial and industrial (C&I) segments tend to be more cyclical, MYR Group should benefit from recent fiscal stimulus funding and outgrowth in its core geographic markets of Colorado and Arizona.
Stifel also highlighted MYR Group’s recently improved free cash flow conversion and strong return on invested capital as factors supporting the company’s valuation multiple.
In other recent news, MYR Group’s second-quarter performance exceeded expectations, driven by a strong showing in its Transmission & Distribution segment. Stifel noted an 11% year-over-year increase in T&D revenue, with growth estimated at over 25% when excluding solar headwinds. Following these results, Stifel raised its price target for MYR Group to $210 while maintaining a Buy rating. Jefferies also adjusted its outlook, raising the price target from $202 to $221, citing utility transmission and distribution capital expenditure tailwinds as a key factor. However, KeyBanc downgraded MYR Group from Overweight to Sector Weight, indicating that the shares are now fairly valued at their current levels. In a notable corporate development, Aurelie Richard has been appointed to the MYR Group Board of Directors. Richard will also serve on the Board’s Audit Committee, bringing her expertise in energy management and electrical distribution systems. These updates reflect a period of significant activity for MYR Group, with varying analyst perspectives and corporate leadership changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.