Stock of the Day

March 30, 2020

MasTec (MTZ)

$329.68
-$11.13 (-3.3%)
Market Cap: $26.93B

About MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

Today's Trend

MasTec, Inc. (NYSE: MTZ) shares have been supported by a wave of upbeat analyst commentary and a strategic acquisition that expands its fast-growing data center business. The stock has generally moved higher on the news, even though some investors are questioning the valuation after the run-up.

  • Cantor Fitzgerald raised its price target on MasTec to $581 from $545 and reiterated an overweight rating, signaling confidence in further upside from current levels. Benzinga report
  • Mizuho also lifted its price target to $502 from $498 and kept an outperform rating, adding to the bullish analyst sentiment around MTZ. Benzinga report
  • MasTec announced a $1.65 billion cash-and-stock deal to acquire The Superior Group, a move expected to strengthen its electrical contracting capabilities and accelerate growth in AI/data center infrastructure. Reuters article
  • Some commentary argues the acquisition may not be enough to justify the stock’s elevated valuation, suggesting investors are weighing the growth benefits against the price paid. Seeking Alpha article
  • One market note said MTZ shares fell after the Superior Group announcement, reflecting some concern about deal execution and dilution, even as the strategic rationale remains intact. Blockonomi article

Overall, MasTec (MTZ) is being driven by optimism that the Superior Group acquisition will boost revenue and earnings in 2026 and beyond, with analysts increasingly endorsing the stock despite some valuation concerns.

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