TimesSquare Capital Management, LLC on MYR Group Inc.
Thesis
TimesSquare added to MYR Group despite a sharp share-price decline driven by fears of political opposition to U.S. data-center construction. The company builds electric utility infrastructure and undertakes commercial and industrial electrical projects. Recent results exceeded expectations and both revenue and backlog reached records. The manager appears to distinguish the strength of the company’s operating results and order book from the market’s data-center construction concerns.
“Despite recent results exceeding expectations and the company posting record revenue and backlog, shares fell”
Key risks
- Growing political opposition could impede data-center construction across the United States.
- The share price has been sensitive to uncertainty around data-center capital spending.