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Investing.com - Stifel raised its price target on Quanta Services (NYSE:PWR) to $475.00 from $432.00 on Thursday, while maintaining a Buy rating on the infrastructure services provider. The stock, currently trading near its 52-week high of $443.97, has delivered impressive returns with a 40.48% gain year-to-date. According to InvestingPro data, the company’s valuation metrics suggest it may be trading at premium multiples.
The research firm cited Quanta’s leading market position in transmission and distribution (T&D) and renewables installations as key factors behind the more bullish outlook.
Stifel expects continued growth for cost-competitive renewables, driven by significant fiscal stimulus from the Inflation Reduction Act (IRA), which should benefit Quanta’s business operations.
For the T&D segment, the firm anticipates steady growth in utility investment, supported by grid hardening and modernization efforts, along with infrastructure needed to support renewable energy adoption.
Stifel also highlighted that Quanta’s strategic shift toward more stable small-to-medium "base" work and high levels of self-performed work (over 80%) should reduce earnings volatility and support the stock’s valuation multiple.
In other recent news, Quanta Services has seen a series of analyst actions and evaluations. Jefferies upgraded Quanta Services from Hold to Buy, raising its price target to $469.00, citing growth in sectors such as data centers and renewables. Meanwhile, Mizuho initiated coverage with a Neutral rating and a $360.00 price target, highlighting Quanta’s strong management and consistent performance in exceeding earnings estimates since 2019. Texas Capital Securities also began coverage with a Buy rating, setting a price target of $437.00, emphasizing Quanta’s role in the electric power market.
Additionally, TD Cowen raised its price target for Quanta Services to $425.00 from $355.00, maintaining a Buy rating, following a quarterly earnings report described as "largely in-line" with expectations. Jefferies also adjusted its price target to $398.00, maintaining a Hold rating, and expressed confidence in Quanta’s potential to achieve significant growth by 2025. These developments reflect a positive outlook from analysts on Quanta Services’ future performance and market position.
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