On Wednesday, Quanta Services (NYSE:PWR) saw its price target increased by B.Riley from the previous $303.00 to a new target of $343.00. The firm maintains a Buy rating on the shares of the infrastructure solutions provider.
The adjustment comes in anticipation of the company's third-quarter financial results, which are predicted to show a revenue of $6.5 billion, marking a 5% increase year-over-year. Adjusted EBITDA is also expected to rise by 17% year-over-year to $691 million, with adjusted earnings per share (EPS) estimated at $2.75, up from $2.24 in the same quarter of the previous year.
The optimism surrounding Quanta Services is partly due to its role as a leading company in electric transmission and distribution (T&D). The firm has been actively involved in hurricane restoration efforts, which are expected to reflect positively in Quanta's fourth-quarter results and forthcoming guidance.
As the company heads into 2025, B.Riley's outlook remains positive, with no expected slowdown in demand. The growth is attributed to the increasing need for power intensity in artificial intelligence data centers and the strong momentum in the electric transmission sector. These factors are anticipated to contribute to Quanta Services' accelerated growth shortly.
In other recent news, Quanta Services further bolstered its financial position by issuing $1.25 billion in senior unsecured notes. The company also acquired Cupertino Electric, Inc. (CEI), a move that analysts at DA Davidson predict will contribute approximately 9% of Quanta's total revenue by 2025.
TD Cowen raised its price target for Quanta Services to $335, maintaining a Buy rating. This adjustment is based on revised financial projections and suggests a positive outlook for the company. Similarly, Stifel increased its price target on Quanta Services shares to $342, reflecting optimism about the company's prospects.
However, JPMorgan initiated coverage on Quanta Services with a Neutral rating, indicating that the current market valuation fully recognizes the company's strengths. Meanwhile, Citi maintained a positive outlook on Quanta Services, raising its price target to $348 based on the company's potential for sustained growth.
Baird also raised its price target on Quanta Services to $320, citing recent market gains and growing demand driven by advancements in artificial intelligence.
These are the latest developments regarding Quanta Services.
InvestingPro Insights
Quanta Services' strong market position and growth prospects, as highlighted in the article, are reflected in several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $45.02 billion, underscoring its significant presence in the infrastructure solutions sector.
InvestingPro data reveals that Quanta Services has demonstrated robust financial performance, with a revenue of $22.03 billion over the last twelve months as of Q2 2024, and a notable revenue growth of 20.03% during the same period. This aligns well with B.Riley's expectations of continued growth and increased demand for Quanta's services.
Two relevant InvestingPro Tips further support the positive outlook:
1. Quanta Services is a "Prominent player in the Construction & Engineering industry," which reinforces its leading position in electric transmission and distribution mentioned in the article.
2. The company has shown a "High return over the last year," with InvestingPro data indicating a remarkable 73.47% price total return over the past year. This performance aligns with the optimistic view presented by B.Riley and the anticipated growth in demand for Quanta's services.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Quanta Services, providing a deeper understanding of the company's financial health and market position.
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