UPDATE: D.A. Davidson Lowers PT on MYR Group Following Lowered EPS Estimates

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In a report published Friday, D.A. Davidson analyst John B. Rogers reiterated a Buy rating on MYR Group MYRG, but lowered the price target from $26.00 to $25.00.

In the report, D.A. Davidson noted, “MYR Group has recently completed work on several large transmission construction projects which generated substantial revenue, although at lower margins due to the mix of subcontractor work included. Margins on subcontracted work and materials are typically lower. Accordingly, we look for T&D revenue to decline, although margins are expected to increase, as shown in our model. We are assuming these trends continue. Despite the lower current EPS estimates, we continue to look for MYR Group to generate long-term gains, driven by solid execution on transmission work, including large potential projects expected to bid in 2013 for construction in 2014 and beyond. Additionally, increased demand for electrical distribution work and interior work should also support growth. Over the past five years the company has delivered average annual EPS growth of 15%, essentially all organic.”

MYR Group closed on Thursday at $20.62.

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Posted In: Analyst ColorPrice TargetAnalyst RatingsD.A. DavidsonJohn B. Rogers
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