Quanta Services stock price target raised to $440 from $370 at BofA

Investing.com - BofA Securities raised its price target on Quanta Services (NYSE:PWR) to $440 from $370 on Thursday, while maintaining a Buy rating on the utility services provider. The new target represents further upside potential for the stock, which is already trading near its 52-week high of $390.1 and has delivered an impressive 59% return over the past year.

The price target increase represents a significant upward revision for Quanta, which BofA believes is well-positioned to benefit from growing demand for complex utility infrastructure solutions. According to InvestingPro data, the company’s strong positioning is reflected in its 15.77% revenue growth and GREAT Financial Health Score, though current valuation metrics suggest the stock is trading at premium multiples.

BofA analyst Sherif El-Sabbahy noted that "Big players set to win" in the utility services sector, with Quanta "in pole position" as utilities increasingly rely on firms capable of providing comprehensive end-to-end solutions for grid hardening, repair, and replacement projects.

The firm’s updated valuation is based on 22.0x 2026E EV/EBITDA, rolled forward from the previous framework of 21x 2025E, with the multiple increase aligning Quanta with "compounder peers" according to the research note.

BofA’s analysis suggests Quanta has a pathway to becoming a "$100bn+ market cap company over time" due to its ability to outgrow the industry, as utilities shift from small projects to larger-scale infrastructure initiatives.

In other recent news, Quanta Services has been the subject of multiple analyst reports and ratings changes. Seaport Global Securities initiated coverage with a Neutral rating, projecting revenue and earnings growth through 2027, highlighting Quanta’s strategic focus on electric and gas utility sectors. Meanwhile, BMO Capital downgraded Quanta Services from Outperform to Market Perform due to valuation concerns, though it raised the price target to $400, indicating confidence in the company’s long-term growth. Similarly, Northland also downgraded Quanta Services to Market Perform, citing valuation issues as the company’s stock has grown significantly in recent years.

Moody’s affirmed Quanta Services’ Baa3 rating and revised its outlook to positive, reflecting strong credit metrics and an enhanced portfolio following strategic acquisitions. The firm noted Quanta’s role in renewable energy and electric power markets as a key strength. UBS increased its price target for Quanta Services to $413, citing an upcoming electric grid investment cycle, particularly in Texas, as a significant revenue opportunity. Despite these various ratings and projections, analysts generally agree on Quanta’s strong position in the utility and infrastructure sectors, although some express caution over valuation and growth sustainability.

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