Stifel Reiterates Buy on Quanta Services, Raises PT to $411

Stifel Reiterates Buy on Quanta Services, Raises PT to $411

In a recent research report, Stifel Financial analysts reiterated their "Buy" recommendation on Quanta Services, Inc. (NYSE:PWR) and raised their price target to $411 from $286.69. This move reflects a bullish outlook on the company's prospects and its position in the infrastructure solutions market.

Quanta Services, a leading provider of infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries, has seen its stock price climb steadily. As of July 2, 2025, the stock was trading at $296.13, up 5.24% from the previous day's close. The stock has been on a strong performance trajectory, with a year-to-date gain of 37.5% [1].

The analysts highlighted Quanta Services' robust earnings growth and its strategic position in the renewable energy sector. The company's Renewable Energy Infrastructure Solutions segment has been a key driver of growth, with engineering, procurement, construction, repair, and maintenance services for wind, solar, and hydropower generation facilities. The company's strong balance sheet and healthy cash flow position were also noted as positive factors.

The company's recent earnings report showed a quarterly earnings per share (EPS) of $1.90, beating analysts' consensus estimates by $0.15. The business's quarterly revenue was up 10.8% year-over-year. Additionally, the company's P/E ratio of 57.52 is considered relatively inexpensive compared to the market average P/E ratio of about 134.74 [1].

Stifel's analysts also praised the company's dividend policy, noting that while the dividend yield is relatively low at 0.13%, the dividend payout ratio is sustainable at 6.98%. This indicates that the company can continue to pay dividends without compromising its growth prospects.

Quanta Services has been the subject of strong analyst interest, with 8 research reports in the past 90 days. The company's high institutional ownership, with 90.49% of the stock held by institutions, also suggests strong market trust. The company has a healthy short interest ratio ("days to cover") of 4.4, indicating that investor sentiment is improving significantly [1].

Overall, Stifel's positive outlook on Quanta Services is backed by the company's strong performance, strategic positioning, and robust financial health. The raised price target reflects the analysts' confidence in the company's growth prospects and its ability to capitalize on the growing demand for infrastructure solutions.

References:
[1] https://www.marketbeat.com/stocks/NYSE/PWR/