MasTec rises as analyst predicts gains

Shares of MasTec Inc. surged on Monday after an analyst said the industrial contractor is poised to gain from strong demand in a number of different segments and raised his price target.

The stock rose $1.20, or 11.9 percent, to $11.27.

ThinkPanmure analyst Eric Kainer, who rates the stock "Buy," forecast opportunities in the company's wind-powered generated facility business.

Kainer said management has secured $50 million in wind contracts that will contribute to 2008 revenue. "It is our expectation that these could provide significant near-term revenues, and are likely to grow with new awards again in the near-term," Kainer wrote in a client note.

MasTec's utility business also represents an area of growth, and Kainer expects his estimates in 2008 and 2008 will end up being conservative.

"We have long viewed the MasTec utility business as a sleeping tiger," Kainer wrote.

Kainer raised his price target by $1 to $13, expecting expansion in natural gas opportunities as the United States tries to lower dependence on foreign fuel.

His price target implies growth of 29 percent over its closing price Friday of $10.07.

Among the services MasTec provides are installation of satellite dishes and utility poles, along with rebuilding telephone systems.