KeyBanc has increased its price target for MYR Group (MYRG, Financial) from $136 to $163 while maintaining an Overweight rating on the company's shares. The decision follows a robust quarterly report from MYR Group, characterized by notable revenue growth and improved margins. This marks a positive turnaround for the company after facing project-related challenges last year. Furthermore, KeyBanc anticipates that MYR Group will achieve mid-to-high single-digit core revenue growth in both of its primary segments by 2025, aligning with prior forecasts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for MYR Group Inc (MYRG, Financial) is $146.00 with a high estimate of $170.00 and a low estimate of $124.00. The average target implies an downside of 0.75% from the current price of $147.10. More detailed estimate data can be found on the MYR Group Inc (MYRG) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, MYR Group Inc's (MYRG, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MYR Group Inc (MYRG, Financial) in one year is $142.70, suggesting a downside of 2.99% from the current price of $147.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MYR Group Inc (MYRG) Summary page.
MYRG Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MYR Group Inc (MYRG, Financial) reported a 2.2% increase in first-quarter revenues, reaching $834 million compared to the same period last year.
- The company's CNI segment saw a significant revenue increase of 14.4%, driven by fixed price contracts and T&E contracts.
- Gross margin improved to 11.6% from 10.6% in the previous year, aided by favorable change orders and better-than-anticipated productivity.
- Operating cash flow for the first quarter was $83 million, a substantial increase from $8 million in the same period last year.
- Total backlog increased by 9% year-over-year, reaching $2.64 billion, indicating strong future business prospects.
Negative Points
- T&D revenues decreased by 5.8% compared to the same period last year, primarily due to selectivity on clean energy projects.
- Higher costs related to labor and project inefficiencies partially offset the increase in gross margin.
- The effective tax rate increased to 28.9% from 18% in the previous year, impacting net income.
- Interest expense rose by $300,000 due to higher average outstanding debt balances.
- The company exhausted its current share repurchase program, with no immediate plans to announce a new one.
