MYR Group (MYRG) PT Lowered to $422 at Goldman Sachs

Goldman Sachs analyst Neil Mehta lowered the price target on MYR Group (NASDAQ: MYRG) to $422.00 (from $469.00) while maintaining a Neutral rating.

The analyst comments "We continue to see MYRG as a beneficiary of the power demand theme as the company remains one of the main players building out the US grid and data center construction. We estimate a 13% revenue CAGR for the C&I business through 2030, supported by increasing construction starts and the acquisition of Valley and Comet Electric, which unlocks an expanded geographic footprint and complementary services. We also see outer-year growth driven by incremental large projects on the T&D side of the business as MYRG remains one of the main players with the ability to build out high-voltage lines such as 500 and 765 kv lines. As a result, we now estimate MYRG to achieve a consolidated revenue CAGR through 2030 of ~13%, reaching consolidated EBITDA margins of ~9% by 2030. We are lowering our NTM EV/EBITDA target multiple to 16.5x to reflect broader AI and power market multiples, and continue to see MYRG as a relatively pure-play name for exposure to the transmission and distribution build-out thematic. We maintain our Neutral rating on the stock on a relative basis as we see stronger upside elsewhere in the thematic. Estimate Changes and Valuation: We are adjusting our EBITDA estimates for 2026/2027/2028 by 0%/+3%/+6% to reflect the closing of the Valley and Comet Electric acquisition and updated long-term expectations on MYRG's position in the power demand theme. We apply an 16.5x NTM EV/EBITDA multiple (lowered from 18.5x to reflect AI and power exposed market multiples), resulting in our 12-month price target of $422 (prior $469). We are Neutral rated on MYRG."

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