Trump to impose 100% tariff on China starting November 1
Investing.com - Seaport Global Securities initiated coverage on Quanta Services (NYSE:PWR) with a Neutral rating on Thursday. The stock, which has delivered an impressive 48% return over the past year, is currently trading near its 52-week high of $388. According to InvestingPro analysis, the company is currently trading above its Fair Value.
The research firm projects revenue, EBITDA, and EPS for Quanta Services at $26.9 billion, $2.72 billion (10.1% margin), and $10.40 for 2025; $29.8 billion, $3.03 billion (10.2%), and $11.90 for 2026; and $33.8 billion, $3.50 billion (10.4%), and $13.90 for 2027. Current financials from InvestingPro show the company generating $24.87 billion in revenue with an EBITDA of $2.17 billion, suggesting alignment with these growth projections.
Seaport Global describes Quanta Services as a "vital enabler and major beneficiary" of two secular growth themes: the power supercycle and natural gas expansion. The firm notes that Quanta generates 95% of its 2024 revenue from North America and stands as the largest specialty contractor for electric and gas utility industries in the United States.
The research firm highlights Quanta’s strategy as "compelling" and "unique," characterized by a construction-led approach, self-performance of approximately 80% of work, in-house development of skilled labor, and selective vertical integration through acquisitions.
Seaport Global expresses particular optimism about Quanta’s Electric segment, which represents 80% of 2024 revenue, but indicates it would consider upgrading the stock upon seeing "a cheaper valuation and/or lower financial leverage." This aligns with InvestingPro data showing the stock trading at a P/E ratio of 60.4x, significantly above industry averages. For deeper insights into Quanta’s valuation metrics and 13 additional ProTips, subscribers can access the comprehensive Pro Research Report.
In other recent news, Quanta Services’ financial outlook has been positively revised by Moody’s, affirming its Baa3 rating and upgrading its outlook to positive. This change reflects the company’s strong credit metrics and strategic acquisitions that have diversified its portfolio. However, Northland downgraded Quanta Services from Outperform to Market Perform, citing concerns over the company’s valuation, despite maintaining a price target of $354. UBS increased its price target for Quanta Services to $413, highlighting potential benefits from an electric grid investment cycle, particularly in Texas. Goldman Sachs also raised its price target to $414, emphasizing Quanta’s role as a leading specialty contractor in transmission and distribution. Piper Sandler adjusted its price target to $370, reflecting anticipated growth in utility sector capital expenditures. Despite varying analyst perspectives, Quanta Services remains a focal point due to its involvement in significant infrastructure projects and its established position in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.