Analyst Marc Bianchi from TD Cowen maintained a Buy rating on Quanta Services and increased the price target to $425.00 from $355.00.
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Marc Bianchi has given his Buy rating due to a combination of factors including Quanta Services’ strategic acquisition of Dynamic Systems, which is expected to positively impact EBITDA revisions. Despite market concerns about a potential slowdown in renewable energy projects, Quanta Services continues to demonstrate growth opportunities and a strong business outlook.
Additionally, the company’s recent quarter showed a slight increase in backlog, driven primarily by the Electric segment, and management remains optimistic about the future of renewable power and transmission projects. The acquisition of Dynamic Systems is anticipated to enhance Quanta’s capabilities and broaden its service offerings, contributing to higher revenue and earnings projections. The updated estimates and a slightly lower discount rate have led to an increased target price, reflecting confidence in Quanta Services’ future performance.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $472.00 price target.