On Wednesday, B.Riley made a positive adjustment to its outlook on MasTec (NYSE: NYSE:), a leading infrastructure construction company. The firm increased the price target on the company’s shares from $134 to $151, while keeping a Buy rating. This adjustment reflects an optimistic view of the company’s financial performance and market position.
The analyst from B.Riley provided insight into the company’s third-quarter performance, projecting revenues of $3.45 billion, marking a 6% year-over-year increase. Adjusted EBITDA is expected to reach $295 million, up 9% from the same period last year. Adjusted earnings per share (EPS) are forecasted at $1.24, a significant rise from the $0.95 reported in the third quarter of 2023.
Despite the occurrence of two major hurricanes within the quarter, the analyst anticipates that these events will have an insignificant impact on the third-quarter results. However, there is an expectation of a moderate positive effect on earnings in the fourth quarter of 2024.
Looking ahead to 2025, B.Riley believes that MasTec is well-positioned to become a leader in AI-datacenter infrastructure. The firm also expects MasTec to accelerate its presence as a top contractor in both electric transmission and distribution (T&D) and wireless sectors.
Additionally, the analyst noted that should the pipeline construction market redevelop, MasTec’s strong market position could benefit from increased activity, especially with potential changes in Washington’s leadership.
In other recent news, MasTec, a leading infrastructure construction company, reported strong second-quarter earnings, with revenues reaching $3 billion and an adjusted EBITDA of $268 million. The adjusted earnings per share were $0.96, exceeding the guidance by $0.08. This robust performance was primarily attributed to the company’s Communications and Oil & Gas sectors, which surpassed expectations.
In addition, MasTec’s backlog increased to $13.3 billion, up $500 million from the previous quarter, indicating a solid pipeline of future work.
Following these developments, JPMorgan initiated coverage on MasTec, assigning an Overweight rating and setting a price target of $153.00. The firm believes that MasTec has successfully navigated the challenges associated with integrating its recent acquisitions and is well-positioned to benefit from industry-wide tailwinds and internal improvements.
Stifel and Baird also adjusted their price targets for MasTec shares, maintaining a Buy and Neutral rating, respectively.
These recent developments reflect MasTec’s strong financial performance and the analysts’ positive outlook for the company’s future. The transition towards the renewables and power delivery markets, coupled with significant backlog growth, suggests potential for revenue growth and margin expansion.
InvestingPro Insights
To complement B.Riley’s optimistic outlook on MasTec (NYSE: MTZ), recent data from InvestingPro provides additional context to the company’s financial performance and market position. MasTec’s market capitalization stands at $9.77 billion, reflecting its significant presence in the infrastructure construction sector. The company has demonstrated strong revenue growth, with a 10.97% increase in the last twelve months as of Q2 2024, reaching $12.19 billion.
InvestingPro Tips highlight that MasTec’s net income is expected to grow this year, aligning with B.Riley’s positive earnings projections. Additionally, seven analysts have revised their earnings upwards for the upcoming period, further supporting the optimistic outlook. The company’s stock has shown remarkable performance, with a 91.62% price total return over the past year and a 48.1% return in the last six months.
These insights reinforce B.Riley’s bullish stance on MasTec’s potential in AI-datacenter infrastructure and its position in the electric transmission and distribution sectors. Investors seeking more comprehensive analysis can access 12 additional InvestingPro Tips for MasTec, providing a deeper understanding of the company’s financial health and market prospects.
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