Goldman Sachs Trims MYR Group Price Target Amid Lower Valuation

Goldman Sachs has reduced its price target on MYR Group to $422, down from $469. This decision was made despite the company's strong financial performance in recent years. In fact, MYR Group's stock has delivered a 71% return over the past year.

The firm lowered its valuation multiple to 16.5 times next-twelve-month EV/EBITDA from 18.5 times, reflecting broader market trends. This adjustment suggests that MYR Group is trading at a relatively low P/E ratio compared to near-term earnings growth. The company's PEG ratio of 0.26 supports this assessment.

Goldman Sachs also adjusted its EBITDA estimates for 2027 and 2028 by 3% and 6%, respectively, to reflect the impact of MYR Group's recent acquisitions. These deals are expected to drive growth in the company's commercial and industrial business, with a projected compound annual growth rate of 13% through 2030.

The firm views MYR Group as a beneficiary of the power demand theme and a relatively pure-play name for exposure to the transmission and distribution build-out thematic. However, Goldman Sachs maintains its Neutral rating on the stock due to stronger upside potential elsewhere in the market.