Research analysts at Jefferies Financial Group have raised their price target for Quanta Services, Inc. (NYSE:PWR) from $469.00 to $517.00. This revision, communicated in a research note issued to investors on October 30, 2023, reflects a positive outlook on the construction company’s growth potential. The firm maintains a “buy” rating on Quanta Services, indicating confidence in the stock’s future performance. The new target suggests a potential upside of approximately 14.36% based on the company’s previous closing price.
Several other financial institutions have also assessed Quanta Services’ stock recently. On August 1, Daiwa America downgraded the company from a “strong-buy” to a “hold” rating. In contrast, UBS Group increased its target price from $413.00 to $474.00 on July 25, while maintaining a “buy” rating. Robert W. Baird set a target price of $490.00, and Weiss Ratings reaffirmed a “buy (b-)” rating on October 8, 2023. Stifel Nicolaus also adjusted its target, raising it from $432.00 to $475.00.
Market analysts’ sentiments on Quanta Services have largely been favorable. Currently, thirteen analysts rate the stock as a “buy,” while twelve analysts categorize it as a “hold.” According to data from MarketBeat.com, the average rating for the stock is “Moderate Buy,” with a consensus price target of $437.73.
Strong Earnings Results Boost Investor Confidence
Quanta Services reported robust earnings results on October 30, 2023, with earnings per share (EPS) of $3.33. This figure surpassed analysts’ expectations of $3.24, marking a solid performance for the quarter. The company’s return on equity stood at 18.41% with a net margin of 3.73%. Revenue for the quarter reached $7.63 billion, exceeding analyst estimates of $7.41 billion. Comparatively, during the same quarter last year, Quanta Services reported EPS of $2.72, representing a year-over-year revenue increase of 17.5%.
For the fiscal year 2025, Quanta has projected an EPS guidance range of $10.330 to $10.830. Analysts predict that the company will achieve an EPS of $9.34 for the current year.
Institutional Investors Adjust Holdings
Institutional investors have recently made significant changes to their holdings in Quanta Services. Activest Wealth Management increased its position by 94.1% during the third quarter, now owning 66 shares valued at around $27,000. Fidelis Capital Partners LLC raised its stake by 28.6%, bringing its total to 1,530 shares valued at approximately $634,000.
In a noteworthy move, Annis Gardner Whiting Capital Advisors LLC increased its holdings by an impressive 952.0%, now holding 1,031 shares valued at around $427,000. Additionally, the New York State Common Retirement Fund boosted its position by 20.0%, owning 152,097 shares valued at approximately $63 million after acquiring an additional 25,308 shares.
Overall, institutional investors and hedge funds now control approximately 90.49% of Quanta Services’ stock. The company, which operates in infrastructure solutions for electric and gas utilities, renewable energy, and communications across the United States, Canada, Australia, and beyond, appears well-positioned for continued growth in the upcoming quarters.
