HARTFORD, Conn. (AP) ¿ Shares of MYR Group Inc. rose Tuesday as two analysts said they see profit at the construction services company moving higher than Wall Street estimates this year and next. Analyst Alex Rygiel of FBR Capital Markets, citing federal stimulus money as a boon to MYR Group, said in a note to investors he believes earnings will be $1 per share for 2009. He reiterated his "Outperform" rating and $21 price target. Analysts surveyed by Thomson Reuters expect the Rolling Meadows, Ill., company to earn 95 cents per share in 2009. "We continue to believe that the company is well positioned to benefit from the stimulus plan and President Obama's focus on renewable energy and infrastructure," Rygiel said. Spending priorities by the Barack Obama administration and Congress may "create additional catalysts for investment" in electric transmission, he said. In addition, legislation giving the Federal Energy Regulatory Commission more authority to plan, locate and permit power facilities "may significantly enhance the longer-term opportunities" for MYR Group, Rygiel said.
Analyst Tahira Afzal of KeyBanc Capital Markets Inc. on Monday reiterated her "Buy" rating and increased her price target to $20 from $16. She initiated a 2010 estimate of $1.20 per share. Analysts surveyed by Thomson Reuters expect $1.19 per share for 2010. She trimmed her 2009 earnings estimate to $1 per share from $1.05 per share, citing increased caution on MYR Group's transmission and distribution construction excluding large electric transmission project development. "Bidding on large transmission projects continues to improve, which bodes positively for bookings, though management expects large awards to remain lumpy in 2009," Afzal wrote in a note to investors. Shares rose 4 percent in afternoon trading, before pulling back to $14.26, up 31 cents, or about 2 percent.