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Investing.com-- BMO Capital Markets analysts upgraded their rating for Quanta Services Inc (NYSE:PWR) citing an attractive entry point following a recent pullback in shares and strong growth prospects across its power and infrastructure businesses.
The brokerage upgraded Quanta to "Outperform" from "Market Perform," but set a revised price target of $316, down from $338, implying a 22% total return from Friday’s close.
BMO highlighted that PWR now trades at 13.0x its 2026 estimated EBITDA—down from 16x during BMO’s initial neutral rating—bringing its valuation in line with the broader market.
Analysts noted that this offers investors an appealing opportunity to gain exposure to a decade-long investment cycle in electric, energy, and telecommunications infrastructure.
The upgrade follows Quanta’s stronger-than-expected FY 2025 guidance, which reinforced BMO’s confidence in the company’s diversified growth drivers.
Analysts also pointed to potential upside from synergies tied to recent acquisitions, including Cupertino Electric.
While BMO adjusted its valuation multiples due to broader sector pullbacks, it maintained its estimates, citing Quanta’s robust $34.5 billion backlog and solid free cash flow growth as key factors supporting the upgraded rating.