Mastec (MTZ) Sees Positive Outlook and Backlog Expansion Potential

TD Cowen's Marc Bianchi raised their price target on Mastec (NYSE: MTZ) by 4.8% from $105 to $110 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Following Mastec's Q1 2024 earnings report, which was released on May 2, 2024, Bianchi focused on management's guidance and highlighted several positive factors. These included a $20 million increase in the company's FY 2024 outlook, a growth in its Oil & Gas segment, and a decrease in its Power Delivery segment. The analyst also noted optimistic feedback on the potential for backlog expansion.

Mastec's Q1 2024 financials showed a loss per share of $0.13, surpassing the Zacks Consensus Estimate of $(0.47) and marking a 75.9% improvement over Q1 2023's $0.54. The company's revenue for the quarter reached $2.69 billion, beating the Zacks Consensus Estimate of $2.67 billion and showing a 3.9% increase compared to Q1 2023's $2.59 billion.

In terms of guidance, Mastec's management provided projections for Q2 2024 and FY 2024. For Q2 2024, the company expects EPS of $0.88, slightly down from Q2 2023's $0.89. Mastec also anticipates revenue of $3.1 billion, higher than Q2 2023's $2.87 billion. The company's adjusted EBITDA is projected to be $260 million, up from Q2 2023's $255.4 million, with an adjusted EBITDA margin of 8.4%, slightly lower than the previous year's 8.9%.

For the full fiscal year 2024, Mastec's management forecasts an EPS of $2.95, an increase from the prior estimate of $2.69. Revenue is expected to reach $12.55 billion, up from the previous projection of $12.5 billion. The company also expects adjusted EBITDA of $975 million, compared to the prior estimate of $955 million, with an adjusted EBITDA margin of 7.8%, up from the previous 7.6%.

CEO Jose Mas expressed confidence in Mastec'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 further emphasized the company's position to benefit from the expected growth in power demand and the increasing demand for data capacity and speed.

CFO Paul DiMarco also expressed satisfaction with the company's Q1 earnings and highlighted their focus on executing for clients and capitalizing on market opportunities in subsequent quarters.

In addition to TD Cowen's Marc Bianchi, other analysts have recently updated their ratings and price targets for Mastec. Baird's Andrew Wittmann raised the price target by 23.6% from $89 to $110 and maintained a Hold rating on the stock. Truist Securities' Jamie Cook increased the price target by 13.5% from $96 to $109 and reiterated a Hold rating. B. Riley Securities' Alex Rygiel raised the price target by 15.4% from $104 to $120 and maintained a Strong Buy rating.

According to data from WallStreetZen, 72.7% of top-rated analysts currently rate MTZ as a Strong Buy or Buy, while 27.3% view it as 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 has risen by 20.2%. However, during this period, Mastec has lagged behind the S&P 500, which has shown a 25.2% increase.

TD Cowen analyst Marc Bianchi, who raised the price target and maintained a Strong Buy rating on Mastec, is ranked among the top 20% of Wall Street analysts by WallStreetZen. Bianchi specializes in the Industrials, Energy, and Basic Materials sectors and has an average return of 9.8% and a 53.7% win rate.

MasTec Incorporated, headquartered in Coral Gables, FL, provides infrastructure services for the communications, energy, and utilities sectors in the U.S. and Canada. The company is involved in the construction of underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines. Additionally, MasTec builds clean energy, natural gas, electrical and gas transmission and distribution systems, heavy industrial plants, compressor and pump stations, treatment plants, and water and sewer infrastructure, including water pipelines. Founded in 1929, MasTec has established itself as a key player in the industry.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.