Quanta Services Price Target Raised to $411 by Stifel Analyst

Stifel analyst Brian Brophy raised the price target on Quanta Services to $411 from $363 and maintained a Buy rating. The analyst's updated forecast suggests a higher valuation for the company, but specific details on the reasoning behind the price target increase were not provided.

Stifel analyst Brian Brophy recently raised the price target on Quanta Services (PWR) to $411 from $363, maintaining a Buy rating. The updated forecast suggests a higher valuation for the company, although specific details on the reasoning behind the price target increase were not provided.

In the latest trading session, Quanta Services closed at $377.56, marking a -2.14% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.03% [1].

Shares of the specialty contractor for utility and energy companies witnessed a gain of 8.47% over the previous month, beating the performance of the Construction sector with its gain of 3.52%, and the S&P 500's gain of 3.94% [1].

The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company is predicted to post an EPS of $2.43, indicating a 27.89% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.55 billion, up 17.11% from the year-ago period [1].

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.32 per share and revenue of $27.06 billion, which would represent changes of +15.05% and +14.3%, respectively, from the prior year [1].

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Quanta Services. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability [1].

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 [2].

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 [2].

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 [2].

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 [2].

Quanta Services, Inc. (NYSE:PWR) led the NYSE gainers with a relatively large price hike in the past couple of weeks. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Quanta Services’s valuation and outlook in more detail to determine if there’s still a bargain opportunity [3].

According to our valuation model, Quanta Services seems to be fairly priced at around 3.1% below our intrinsic value, which means if you buy Quanta Services today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $398.09, then there isn’t much room for the share price grow beyond what it’s currently trading [3].

Is there another opportunity to buy low in the future? Since Quanta Services’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market [3].

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Quanta Services' earnings over the next few years are expected to increase by 74%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value [3].

References:
[1] https://www.sharewise.com/us/news_articles/Why_Quanta_Services_PWR_Dipped_More_Than_Broader_Market_Today_Zacks_20250709_0015
[2] https://ng.investing.com/news/analyst-ratings/seaport-global-securities-initiates-quanta-services-stock-with-neutral-rating-93CH-2001719
[3] https://finance.yahoo.com/news/too-consider-buying-quanta-services-114309077.html