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Investing.com -- Goldman Sachs has adjusted its ratings for two players in the U.S. energy services sector, upgrading MasTec (NYSE:MTZ) to Buy while downgrading MYR Group (NASDAQ:MYRG) to Neutral. 

While both companies are expected to benefit from robust utility spending, Goldman Sachs (NYSE:GS) sees stronger potential for estimate revisions at MasTec due to significant new pipeline construction opportunities.

According to Goldman Sachs, MasTec is poised for a "strong backlog increase" as a leading pipeline contractor in the U.S., with seven new pipelines recently receiving final investment decisions (FID). 

The firm now estimates a "run rate revenue of ~$2.5 bil for the pipeline segment through 2030," an increase from their previous assumption of ~$2.0 bil. 

Given that Pipeline Infrastructure is MasTec’s "highest EBITDA margin segment," Goldman Sachs has revised its EBITDA estimates to be "+2%/+8%/+3% above FactSet consensus for 2025/2026/2027, respectively." 

Additionally, new framework agreements are expected to "drive improved operational visibility and margins in the Clean Energy segment." Goldman Sachs has raised its price target for MasTec to $195.

For MYR Group, Goldman Sachs believes that "at the current price the stock is reflecting a high single digit revenue growth CAGR through 2030, in-line with our broader expectations of utility spending." 

While acknowledging MYR Group as a "pure play means of gaining SMID exposure to transmission and distribution," Goldman Sachs indicates a preference to "await incremental visibility around further estimate revision drivers." 

The firm has maintained its price target for MYR Group at $168 and for MTZ at $195.

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