MasTec Price Target Cut By Analysts Post IEA Deal Announcement

Credit Suisse analyst Jamie Cook lowered the price target on MasTec, Inc. MTZ to $102 (an upside of 44%) from $103 while maintaining the Outperform rating in the shares.
MTZ announced the acquisition of Infrastructure & Energy Alternatives Inc IEA in a cash-and-stock transaction valued at $14 per IEA share and composed of 75% cash and 25% stock.
The analyst believes IEA aligns with the company's strategy to strengthen its positioning and profitability outside of Oil & Gas, particularly with IEA solving for Renewables and Henkels & McCoy in Power Delivery.
Related: MasTec Acquires Infrastructure And Energy Alternatives For $1.1B
Cook believes the price for IEA was reasonable, although the timing for another deal was a bit earlier than expected, it accelerates MTZ's portfolio optimization story. Pro forma for IEA in 2023, oil and gas sits at only 13% of revenues vs. 32% in 2021.
B. Riley analyst Alex Rygiel lowered MTZ's price target to $86 (an upside of 21.6%) from $97 while maintaining the Buy rating on the shares.
The analyst states that this acquisition of Infrastructure and Energy Alternatives provides scale to MasTec's growing clean energy business adding 6,000 to headcount and entry into union markets.
Price Action: MTZ shares are trading higher by 3.70% at $70.89 on the last check Tuesday.