Argus revises price targets for key U.S. engineering and construction stocks

Investment research firm Argus issued new price targets for several prominent U.S. engineering and construction companies, reflecting revised expectations for sector performance through September 2025. The note covers AECOM, Fluor, EMCOR, MasTec, Martin Marietta Materials and Granite Construction.

Sector outlook and company profiles

Headquartered in Los Angeles, AECOM delivers planning, consulting, architectural, engineering design and construction-management services for a wide range of infrastructure projects. The company operates in transportation, water, environment and energy markets across more than 150 countries.

Fluor (FLR), based in Irving, Texas, specializes in engineering, procurement, fabrication, construction and maintenance for energy, chemicals and infrastructure clients. EMCOR Group (EME), headquartered in Norwalk, Connecticut, provides mechanical and electrical construction as well as facilities services.

MasTec (MTZ), from Coral Gables, Florida, focuses on infrastructure construction for telecom, energy and utility customers. Raleigh-based Martin Marietta Materials (MLM) supplies aggregates and heavy building materials, while Granite Construction (GVA), located in Watsonville, California, builds transportation, water and mineral projects.

Revised price targets through September 2025

Argus adjusted five of the six companies’ 12-month price objectives:

• Fluor (FLR): target lifted to $44.00.
• EMCOR Group (EME): target raised to $651.00.
• MasTec (MTZ): target reduced to $234.00.
• Martin Marietta Materials (MLM): target lowered to $647.00.
• Granite Construction (GVA): target cut to $117.00.

No change was announced for AECOM’s existing target.

The revision follows sector analysis led by John D. Staszak, CFA, an Argus securities analyst covering consumer discretionary and consumer staples companies. Staszak’s background includes positions at Standard & Poor’s, the Bank of New York, Harris Nesbitt Gerard and Merrill Lynch. He holds an MBA from the University of Texas, a BA in Economics from the University of Pennsylvania and has been recognized by publications such as Forbes, The Wall Street Journal and the Financial Times for forecasting accuracy.

Drivers behind the new valuations

Argus based the updated targets on anticipated demand for infrastructure, materials and specialized construction services in the United States. Projects tied to federal and state funding, private-sector capital expenditure and energy transition initiatives continue to influence revenue projections for the covered companies.

The research house also accounted for cost-inflation trends, labor availability and backlog visibility. Adjustments for MasTec, Martin Marietta and Granite reflect expected margin pressure in their respective sub-segments, while higher targets for Fluor and EMCOR incorporate stronger order pipelines and services diversification.

These assessments align with broader industry commentary from the American Society of Civil Engineers, which highlights ongoing investment needs across transportation, water and energy infrastructure.

Analyst methodology

Argus applies fundamental analysis, reviewing each company’s balance sheet, cash flow generation, competitive position and management guidance. Macroeconomic indicators such as gross domestic product growth, construction spending and commodity pricing are also weighed. Price targets represent the firm’s projection of fair value within a 12-month horizon and are subject to revision as new data emerge.

Implications for investors

The updated targets suggest Argus sees upside potential for Fluor and EMCOR shares and more limited appreciation for companies facing cost headwinds. Investors monitoring infrastructure spending trends may use these figures as a benchmark while considering their own risk tolerance and portfolio goals.

Those interested in additional market perspectives can review recent coverage in our Finance News Update section.

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