MasTec upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded MasTec (MTZ) to Buy from Neutral with a price target of $195, up from $156. Given the significant number of long haul pipeline announcements from midstream oil and gas companies recently, and given that MasTec is the largest market player in pipeline construction today, the firm expects the Pipeline Infrastructure segment to run rate at about $2.4B-$2.5B in annual revenue over the next few years, the analyst tells investors in a research note. While the cadence and size of the potential awards remains to be determined, the firm sees the potential for about $500M in backlog growth for each pipeline award, Goldman added.