On Wednesday, TD Cowen analysts increased their price target on Quanta Services (NYSE:PWR) stock to $355 from the previous target of $335, while maintaining a Buy rating. Currently trading at $317.65, the company has established itself as a prominent player in the Construction & Engineering industry, according to InvestingPro data. The firm acknowledged the company’s strong performance in the first quarter, highlighting the robustness of the Electric Power and Communications segments.
Quanta Services reported a solid start to the year, surpassing expectations, which the analysts noted as a "clean 1Q beat." With revenue growth of 15.8% and an EBITDA of $2.17 billion in the last twelve months, the company’s performance reflects its strong market position. Management’s positive outlook was underscored by the continued high demand from utility companies and data centers. Despite uncertainties related to the Inflation Reduction Act (IRA) and international trade, Quanta Services is seen as having a clear visibility moving forward.
TD Cowen’s analysts expressed confidence in the company’s advantageous position to capitalize on the ongoing trends in grid modernization and electrification. They pointed out that these long-cycle themes are expected to drive growth for Quanta Services.
The company’s management also conveyed a constructive tone, indicating a resilient market environment that Quanta Services is well-equipped to navigate. This perspective supports the analysts’ view that the company’s current market strategy and operational execution align well with industry demands.
In summary, TD Cowen’s revised price target reflects their expectation that Quanta Services will continue to thrive amidst the industry’s evolving landscape, benefiting from key trends in infrastructure and technology. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its Fair Value. Investors can access 14 additional ProTips and a comprehensive Pro Research Report, along with detailed financial metrics and expert analysis, through an InvestingPro subscription.
In other recent news, Quanta Services reported impressive financial results for the first quarter of 2025, exceeding both earnings and revenue forecasts. The company achieved an adjusted earnings per share (EPS) of $1.78, surpassing the anticipated $1.74, and reported revenue of $6.23 billion, which was above the projected $5.88 billion. As a result, Quanta Services has raised its full-year 2025 guidance for revenue, adjusted EBITDA, and EPS. Analyst firms have responded positively to these results, with Piper Sandler raising the company’s stock target to $360 and maintaining an Overweight rating. Stifel also increased its price target from $306 to $363, citing strong performance in Quanta’s Utility and Infrastructure Solutions division. Jefferies raised the price target to $298 but maintained a Hold rating, reflecting some caution about renewable energy project uncertainties. Bernstein analysts were more optimistic, lifting the price target to $383 and maintaining an Outperform rating, influenced by the strong performance of Howmet Aerospace, a part of Quanta’s portfolio. These recent developments highlight Quanta Services’ strategic positioning and potential for continued growth in the infrastructure sector.
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