Steve Fleishman, an analyst from Wolfe Research, has initiated a new Hold rating on MasTec (MTZ).
Steve Fleishman has given his Hold rating due to a combination of factors related to MasTec’s current market position and financial outlook. The company is well-positioned in various end markets, such as data centers and telecommunications, which offer steady revenue streams and potential growth opportunities. However, the Clean Energy & Infrastructure segment has faced challenges, impacting overall performance.
Additionally, while MasTec is a leader in large-diameter pipeline construction and could benefit from a pro-fossil fuel policy environment, its historical track record in meeting sales targets has been inconsistent. This inconsistency, along with its valuation metrics, which show a discount on an EV/EBITDA basis but a premium on a P/E basis compared to peers, supports the Hold rating. Fleishman also notes the company’s strategy of using free cash flow for debt reduction and small acquisitions, projecting a conservative high single-digit EBITDA growth rate.
According to TipRanks, Fleishman is a 4-star analyst with an average return of 8.8% and a 55.38% success rate. Fleishman covers the Utilities sector, focusing on stocks such as FirstEnergy, Enlight Renewable Energy, and Fluence Energy.