On Monday, Stifel analysts raised the price target for Quanta Services (NYSE:PWR) shares from $306.00 to $363.00, maintaining a Buy rating on the stock. Currently trading at $321.07, Quanta has demonstrated strong momentum with a 10.5% return over the past week. The adjustment follows Quanta’s first-quarter results for 2025, which surpassed expectations, fueled by strong performance across its segments, especially in terms of profitability within its Utility and Infrastructure Solutions (UUI) division. According to InvestingPro, the company maintains its position as a prominent player in the Construction & Engineering industry.
Quanta Services reported a year-over-year increase of 18% in its backlog and a 44% rise in orders, building on its impressive revenue growth of 15.8% over the last twelve months to $24.9 billion. The Energy Infrastructure (EI) segment showed significant growth, with a 25% year-over-year increase in backlog and a 47% jump in orders. Although the UUI segment experienced a 9% decline in backlog, it still saw a 26% increase in orders. A notable contributor to the EI segment’s growth was the award of the McCullough-Victorville Transmission Line project, valued at over $1 billion, which is anticipated to commence in mid-2026 and extend through late 2028.
The company also signaled the potential for securing additional large transmission project awards later within the year. Despite uncertainties related to tariffs and the Inflation Reduction Act (IRA), Quanta Services expressed confidence in the clean energy sector’s prospects for 2025 and the following year. The company’s scale and its relationships with large developers, such as NextEra, coupled with a robust demand environment, are believed to provide a buffer against these uncertainties.
Quanta Services has revised its 2025 guidance upwards, attributing the positive outlook to stronger-than-expected performance in the Energy Infrastructure segment and a revised, lower tax rate assumption. The company’s recent performance and optimistic projections have contributed to Stifel’s decision to raise the price target, reflecting confidence in Quanta’s strategic positioning and market opportunities. Based on InvestingPro analysis, which includes 15+ additional key insights and comprehensive valuation metrics, the stock appears to be trading above its Fair Value. Discover detailed analysis and more actionable insights with InvestingPro’s exclusive Pro Research Report, available for over 1,400 US stocks.
In other recent news, Quanta Services reported impressive first-quarter 2025 results, with earnings per share (EPS) of $1.78, surpassing the forecasted $1.74. The company also exceeded revenue expectations, reporting $6.23 billion compared to the anticipated $5.88 billion. Following these strong financial results, Quanta Services raised its full-year 2025 guidance for revenue, adjusted EBITDA, and EPS. Analyst firm Bernstein maintained a positive outlook on Quanta Services, raising the price target from $347.00 to $383.00 and endorsing the stock with an Outperform rating. Jefferies also updated its assessment, increasing the price target to $298.00 while maintaining a Hold rating. The analysts highlighted Quanta Services’ strong backlog and potential in the 765kV transmission projects. Additionally, Howmet Aerospace, a company within Quanta’s portfolio, reported first-quarter earnings that exceeded expectations, contributing positively to Quanta’s prospects. These developments reflect a robust demand in renewable energy and data center infrastructure solutions.
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