This analyst has a $500 target on MasTec

Roth Capital Partners analyst Philip Shen says MasTec’s (MasTec Stock Quote, Chart, News, Analysts, Financials NYSE:MTZ) acquisition of The Superior Group fills a key gap in its data centre offering and strengthens its exposure to AI infrastructure spending.

In a July 8 update, Shen reiterated his “Buy” rating and $500.00 target on MasTec.

MasTec announced July 7 that it will acquire The Superior Group, an Ohio-based electrical contractor with inside electrical capabilities for data centres. Shen said the deal gives MasTec a more complete end-to-end offering across the AI and data centre lifecycle.

“This capability had been the missing piece in the company’s portfolio for datacenter, and the company can now provide a full end-to-end offering to hyperscalers,” Shen said.

MasTec is acquiring Superior for an enterprise value of $1.65-billion, including $1.18-billion in cash and $475-million in stock, plus a potential earnout tied to post-closing performance. Shen said the purchase price equates to about seven times Superior’s 2026 estimated Adjusted EBITDA, or closer to eight times including the earnout.

Shen said the multiple is attractive compared with Quanta Services’ 2024 acquisition of Cupertino Electric at about 10 times EBITDA.

Superior is expected to generate about $240-million of Adjusted EBITDA in 2026, representing a 14% margin. For the five months after closing in 2026, it is expected to contribute about $850-million of revenue, $108-million of Adjusted EBITDA and 58 cents of adjusted diluted EPS.

In 2027, Superior is expected to generate about $2.4-billion of revenue and $263-million of Adjusted EBITDA.

The acquisition adds more than 2,700 skilled field electricians and technicians, plus more than 1,000 workers in affiliate operations. Superior also brings a 300,000-square-foot prefabrication and modular manufacturing facility, engineering capabilities and established union relationships.

Shen said the deal materially increases MasTec’s exposure to data centres, electrification and reshoring, while allowing the company to combine Superior’s inside electrical work with MasTec’s power delivery, communications, natural gas, industrial water and underground utility capabilities.

MasTec sized the data centre electrical contracting market at about $55-billion in 2025, growing to $165-billion by 2030.

The analyst raised his 2026 and 2027 estimates to reflect the acquisition and a stronger power delivery outlook. He now expects MasTec to generate Adjusted EBITDA of $1.60-billion on revenue of $18.36-billion in fiscal 2026, improving to Adjusted EBITDA of $2.08-billion on revenue of $22.24-billion in fiscal 2027.

-30-