Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Quanta Services Upgraded at UBS On Cleared Solar Overhang

Stock Markets Jun 13, 2022 16:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Sam Boughedda

UBS analyst Steven Fisher upgraded infrastructure services provider Quanta Services (NYSE:PWR) to Buy from Neutral, raising the firm's price target on the stock to $156 from $140.

Fisher wrote to investors on Monday that as the solar inquiry overhang is cleared, for now, they have come off of the sidelines.

"We move back to a Buy on PWR, now that the solar overhang has cleared, and we have more confidence in EPS growth ahead from electric grid investment and renewed upside potential from midstream," said Fisher. "We downgraded PWR to Neutral in mid-April, arguing that despite a strong backdrop for PWR's EPS growth, the overhang from the solar investigation and the stock at an all-time high near $140 capped upside potential and warranted a risk element to be factored into the P/E. That no longer supported a Buy rating at that time."

However, he says now, with the overhang cleared, pressure should be removed from the P/E with continuing momentum for the electric business and new and growing opportunities for the underground business.

"The multiple is still >1x below where it was in mid-April (19.2x vs 20.5x-20.8x), and we expect it to re-rate back towards that level. Combined with robust earnings growth, that makes the stock a Buy, in our view. We expect EPS to grow at a 14% CAGR through 2024, ~130bps ahead of consensus."

Quanta Services Upgraded at UBS On Cleared Solar Overhang
 

Related Articles

Dow futures Dip After Strong Jobs Report
Dow futures Dip After Strong Jobs Report By Investing.com - Aug 07, 2022

By Oliver Gray Investing.com - U.S. stock futures were trading lower during Sunday’s evening deals, with major benchmark averages coming off a positive week as stronger than...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email