Shares of MasTec (NYSE: MTZ) and Dycom (NYSE: DY) are moving higher Monday after Adam Thalhimer from BB&T indicated that the two companies may benefit from the AT&T (NYSE: T) and DirectTV (NYSE: DTV) deal.
Both MasTec and Dycom are construction companies with a significant communications infrastructure business.
In the press release announcing the merger, AT&T commented that it would expand its broadband offering to 15 million customers, most of which will be in rural areas. Thalhimer commented on the infrastructure expenditure, saying he expects AT&T to spend between $3 billion and $9 billion over four years on this infrastructure.
The press release indicates that this expansion will only take place if AT&T is able to acquire DirecTV. Because many are concerned about the viability of the deal (government regulation, a counter offer from Dish, etc.) expansion in MasTec’s and Dycom’s business is far from a sure deal.
BB&T currently has a Buy rating on Dycom and Hold rating on MasTec. The companies are trading 1.82 percent and 0.10 percent higher, respectively.
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