Mastec (MTZ) Price Target Raised 15.4% by B. Riley Securities Analyst

B. Riley Securities's Alex Rygiel raised their price target on Mastec (NYSE: MTZ) by 15.4% from $104 to $120 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Mastec, a company that builds infrastructure for the communications, energy, and utilities sectors in the U.S. and Canada, recently reported its Q1 2024 earnings. The results came in ahead of B. Riley Securities's expectations, and Rygiel finds the stock's current valuation to be attractive.

For Q1 2024, Mastec reported a loss per share of $0.13, beating the Zacks Consensus Estimate of $(0.47) and showing significant improvement from Q1 2023's $0.54. The company also reported revenue of $2.69 billion, surpassing the Zacks Consensus Estimate of $2.67 billion and showing a 3.9% increase compared to Q1 2023's $2.59 billion.

Looking ahead, Mastec management provided guidance for Q2 2024 and the full year. For Q2 2024, they expect EPS of $0.88, slightly lower than Q2 2023's $0.89. Revenue is projected to reach $3.1 billion, up from Q2 2023's $2.87 billion. Adjusted EBITDA is expected to be $260 million, an improvement from Q2 2023's $255.4 million, while the adjusted EBITDA margin is anticipated to be 8.4%, down from Q2 2023's 8.9%.

For the full year 2024, Mastec management forecasts EPS of $2.95, up from the prior estimate of $2.69. Revenue is projected to reach $12.55 billion, up from the previous estimate of $12.5 billion. Adjusted EBITDA is expected to be $975 million, an increase from the prior estimate of $955 million, with an adjusted EBITDA margin of 7.8%, up from the previous estimate of 7.6%.

Mastec CEO Jose Mas expressed optimism about the company's performance, stating, "Our Q1 results significantly exceeded our expectations, and I expect 2024 to begin the validation of our investment and diversification strategy over the last few years." Mas highlighted the potential impact of expected power demand growth on Mastec's various segments and emphasized the company's position to capitalize on the country's future infrastructure needs.

CFO Paul DiMarco also commented, stating, "We are pleased to have exceeded our Q1 earnings guidance in each segment and reduced net debt leverage further than expected to 2.7x." DiMarco expressed enthusiasm about building on this momentum in subsequent quarters and taking advantage of the numerous opportunities in their end markets.

In addition to B. Riley Securities's Alex Rygiel, other analysts also updated their ratings and price targets for Mastec on May 6, 2024. Baird's Andrew Wittmann raised their price target by 23.6%, from $89 to $110, and maintained their Hold rating on the stock. Truist Securities's Jamie Cook raised their price target by 13.5%, from $96 to $109, and reiterated their Hold rating. Craig-Hallum's Christian Schwab raised their price target by 30.2%, from $96 to $125, and maintained their Buy rating on the stock.

Currently, 72.7% of top-rated analysts rate MTZ as a Strong Buy or Buy, while 27.3% consider it a Hold. No analysts recommend or strongly recommend selling the stock.

Since Mastec's latest quarterly report on May 2, 2024, the stock price has increased by 16.3%. Year-over-year, the stock is up 20.2%. However, during this period, Mastec has slightly trailed the S&P 500, which has shown a 25.2% increase.

Alex Rygiel, the B. Riley Securities analyst who raised the price target on Mastec, is ranked in the top 1% of Wall Street analysts by WallStreetZen. With an average return of 43% and a 61.2% win rate, Rygiel specializes in the Basic Materials and Consumer Cyclical sectors, among others.

Mastec Incorporated, founded in 1929 and headquartered in Coral Gables, FL, plays a crucial role in building infrastructure for the communications, energy, and utilities sectors in the U.S. and Canada. The company's services include constructing underground and overhead distribution systems, power lines, clean energy installations, and water and sewer infrastructure.

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