MYR Group (MYRG) PT Lowered to $119 at Stifel

Stifel analyst Brian Brophy lowered the price target on MYR Group (NASDAQ: MYRG) to $119.00 (from $172.00) while maintaining a Buy rating.

The analyst commented: "2Q24 missed expectations primarily due to new challenges from solar projects in T&D as well as a new challenging project in C&I. We believe 2Q24 margins are likely to be the low watermark as prior earnings on these new challenged projects were reversed in the quarter. But, these challenged projects are expected to continue
at lower margins through the 2H24. Excluding these challenged projects, 2Q24 margins were in-line with normalized targets in both segments. As such, margins should see meaningful improvement in 2025 as these challenged projects roll-off (and assuming no additional challenging projects emerge). While the quarter was disappointing and visibility into these challenged projects is low, we would note that temporarily depressed margin performance has often created long-term attractive entry points into specialty E&Cs in the past. MYRG also now trades at one of the more attractive multiples in the space, in our view. We are maintaining our Buy rating."

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