- 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.