MasTec (MTZ) Valuation in Focus as Analysts Boost Ratings and Guidance on Strong Business Gains

MasTec (MTZ) recently caught investors’ eyes after several major analyst firms expressed optimism about the company’s prospects. These analysts cited record backlogs, improved guidance, and solid gains in its communications, power delivery, and clean energy segments.

See our latest analysis for MasTec.

MasTec’s share price has seen some wild swings lately, but the bigger picture points to serious momentum, with a 1-year total shareholder return of 53.5% and a three-year total return above 187%. After a sharp rally, the stock is up nearly 40% since January. This reflects both optimism about infrastructure demand and a renewed appetite for growth opportunities, even as near-term volatility persists.

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Given MasTec’s sharp rally and still-optimistic analyst targets, the real question is whether shares remain undervalued despite recent gains or if the market has already priced in all the company’s growth potential.

Most Popular Narrative: 11.7% Undervalued

MasTec's most popular narrative points to a fair value that sits well above the latest closing price, even after a strong rally. This signals that, in the eyes of the market’s most closely followed view, there is considerable room left for upside if certain key assumptions play out.

The structural build-out of fiber networks and 5G deployment, as evidenced by record backlog, broad customer demand (including major carriers' ambitious fiber targets), and strong year-over-year growth in Communications, sets up a sustained growth runway for both revenues and margins as volumes scale and operational leverage increases.

Read the complete narrative.

Curious what ambitious growth rates and evolving profit margins fuel this target price? The real story is about multi-year expansions and margin leaps. See the surprising details that justify such a bold valuation.

Result: Fair Value of $221.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, higher costs from rapid scaling and potential delays on major projects could pressure margins if demand or execution falls short of expectations.

Find out about the key risks to this MasTec narrative.

Another View: What If Multiples Paint a Different Picture?

While some see MasTec as undervalued by intrinsic analysis, the company's current price-to-earnings ratio stands at 57.1x. This is significantly higher than both its peer average of 47.1x and the US Construction industry average of 35.6x. The fair ratio based on regression is 40.7x, which suggests that MasTec trades at a premium. Does the market believe MasTec deserves this premium, or is there a risk that sentiment could shift?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own MasTec Narrative

If you have a different take or want to shape the story with your own research and insights, you can put it together in just a few minutes. Do it your way

A great starting point for your MasTec research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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