Street Calls of the Week
Investing.com - Wolfe Research upgraded MasTec (NYSE:MTZ) from Peerperform to Outperform on Wednesday, setting a price target of $227.00. The infrastructure company, currently trading at $191.96 with a market capitalization of $14.9 billion, has already delivered an impressive 41% return year-to-date. According to InvestingPro, the stock maintains a "GOOD" financial health score.
The upgrade comes as Wolfe Research anticipates a favorable setup for MasTec with an approaching inflection point in gas infrastructure spending. The firm highlighted multiple growth drivers including data center expansion and utility capital expenditures as continuing tailwinds for the company. Trading near its 52-week high, MasTec’s momentum is reflected in its P/E ratio of 57.23, suggesting investors are pricing in significant growth expectations.
According to Wolfe Research, MasTec is positioned to deliver strong growth from 2026 onward, with renewables and fiber segments remaining stable. The firm expects the valuation gap between MasTec and competitor Quanta Services (NYSE:PWR) to narrow over time.
Wolfe Research raised its estimates to the high end of MasTec’s 2025 guidance and increased 2026 pipeline segment projections, noting this is MasTec’s highest-margin business. The firm believes MasTec stock has performed well but is still in the early stages of benefiting from increased gas pipeline spending.
The $227 price target is based on a 14x multiple of projected 2027 EBITDA, which still assumes a 26% discount to Wolfe’s 19x target for Quanta Services . With an EV/EBITDA multiple of 17.98, InvestingPro analysis reveals 16 additional key insights about MasTec’s valuation and growth prospects, available exclusively to subscribers.
In other recent news, MasTec has been the subject of several analyst updates. Jefferies raised its price target for MasTec to $218 from $213, maintaining a Buy rating, following the company’s second-quarter results and an upward revision of its fiscal year 2025 guidance. Mizuho initiated coverage with an Outperform rating, citing MasTec’s significant sales from clean energy and power delivery, which are expected to grow substantially by 2025. Texas Capital Securities also started coverage with a Buy rating and a price target of $250, highlighting MasTec’s prominent role in utility infrastructure. KeyBanc reiterated its Overweight rating with a $205 price target, noting MasTec’s potential for growth and conservative management guidance.
Additionally, MasTec announced a temporary blackout period for its 401(k) plan participants due to a change in recordkeeper services. This transition will move the plan’s recordkeeping from Bank of America/Merrill Lynch to Schwab Retirement Plan Services, Inc., effective October 1, 2025. The blackout period will restrict certain transactions and is scheduled to begin on September 22, 2025. These developments reflect a period of strategic adjustments and analyst interest in MasTec’s future performance.
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