Update shared on 07 Nov 2025
Fair value Increased 4.59%Analysts have raised MYR Group's fair value estimate by $10 to $228 per share, citing stronger than expected growth in transmission and distribution activity and improved bidding momentum as key factors supporting the revised outlook.
Analyst Commentary
Recent analyst updates on MYR Group highlight a mix of optimism and caution, with views reflecting both the company's near-term momentum and considerations around valuation.
Bullish Takeaways
- Bullish analysts note a notable acceleration in Transmission and Distribution equipment and services activity, especially in the third quarter. This exceeded prior expectations.
- Improvement in bidding and award momentum is seen as a strong indicator of robust demand and a favorable setup as the upcoming reporting season approaches.
- MYR Group's financial flexibility and conservative balance sheet are frequently cited as positive attributes supporting future growth and resilience.
- Exposure to rapidly expanding sectors, such as data center construction, adds to the growth opportunity embedded in current operations.
Bearish Takeaways
- Bearish analysts are increasingly cautious about the current valuation. They indicate that shares are now trading close to their recent price targets and may be fairly valued after a period of strong performance.
- Some recommend holding or reducing positions until a better entry point emerges. This suggests the outlook remains constructive but not sufficiently compelling for new investment at present levels.
- Although prior execution challenges have been addressed, ongoing attention to project delivery and cost management remains important for sustaining positive momentum.
Valuation Changes
- Fair Value Estimate has increased from $218 to $228 per share. This reflects an upward revision of the company's outlook.
- Discount Rate has risen slightly, moving from 8.21% to 8.48%. This indicates a marginal increase in perceived investment risk or market expectations.
- Revenue Growth Forecast has edged higher, up from 7.65% to 8.09%. This signals expectations of improved top-line expansion.
- Net Profit Margin projection has decreased slightly, from 3.60% to 3.56%. This suggests modest pressure on profitability despite higher revenue forecasts.
- Future P/E Ratio estimate has increased modestly, from 23.17x to 23.94x. This implies a marginally higher valuation multiple for expected earnings.
Disclaimer
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