Update shared on 01 Nov 2025
Fair value Increased 4.62%MasTec's analyst fair value estimate has been raised from $227.50 to $238.00 per share, as analysts cite improving inventories, notable growth opportunities in utility and energy infrastructure, and a favorable near-term setup across several business segments.
Analyst Commentary
Recent Street research on MasTec has been overwhelmingly positive, with a series of price target increases and new Buy ratings reflecting rising confidence in the company's near- and long-term growth prospects. Analysts are reacting to strong execution across business units and favorable underlying trends in core markets such as energy infrastructure and utilities.
Bullish Takeaways- Bullish analysts have cited improving inventory trends and a robust demand environment, especially in utility and energy infrastructure, driving higher valuations.
- Positive momentum is supported by record or near-record backlogs, indicating sustained future revenue streams and visibility.
- MasTec’s end market diversification, including growth in electric transmission, gas pipelines, renewable energy, and data communications, provides stability and multiple pathways for continued expansion.
- Operational execution and margin improvement remain a focus, with some firms noting outperformance in Transmission and Distribution and successful new project awards that could fuel further upside.
- Bearish analysts remain somewhat cautious on residential-focused segments, noting the potential for mixed results compared to utility-scale businesses.
- There is some concern around the reliance on a favorable macroeconomic backdrop and the potential impact if tailwinds such as infrastructure investment slow down.
- While near-term growth has been strong, some view the relatively high valuations as dependent on the company maintaining its current execution momentum and backlog conversion rates.
What's in the News
- MasTec updated its earnings guidance for the year ending December 31, 2025. The company is projecting revenue of $14,075 million, GAAP net income of $399 million, and GAAP diluted earnings per share of $4.80. (Key Developments)
- Chief Financial Officer Paul Dimarco stated that MasTec is actively seeking merger and acquisition opportunities, with a focus on deals that are incremental to earnings, involve strong management teams, or expand service offerings in response to customer demand. (Key Developments)
Valuation Changes
- The Fair Value Estimate has increased from $227.50 to $238.00 per share, reflecting a modest upward adjustment.
- The Discount Rate has risen slightly from 8.58% to 8.60%.
- The Revenue Growth Assumption has declined modestly from 9.65% to 9.39%.
- The Net Profit Margin forecast has decreased from 4.26% to 4.16%.
- The Future Price/Earnings (P/E) multiple has increased from 30.17x to 32.95x, indicating higher anticipated market valuation.
Disclaimer
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