Quanta Services (NYSE:PWR) Upgraded to Outperform at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Quanta Services from "market perform" to "outperform" and set a $650 price target, implying roughly a 19.2% upside from the prior close.
• Multiple analysts lifted targets (average price target ~$587.91) with 18 Buys and 6 Holds, and large institutions like Norges Bank, Bank of America and DZ Bank significantly increased positions, leaving about 90.5% of the stock held by institutions.
• Quanta beat quarterly estimates (EPS $3.16 vs. $3.02; revenue $7.84B vs. $7.38B), provided FY2026 guidance of $12.65–$13.35 EPS, but currently trades at a high valuation (P/E ~80x).

Quanta Services (NYSE:PWR - Get Free Report) was upgraded by equities researchers at BMO Capital Markets from a "market perform" rating to an "outperform" rating in a research note issued on Friday. The firm presently has a $650.00 price objective on the construction company's stock. BMO Capital Markets' price objective would suggest a potential upside of 19.21% from the stock's previous close.

Several other equities analysts also recently weighed in on PWR. Mizuho raised their price target on Quanta Services from $424.00 to $537.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 24th. Sanford C. Bernstein upped their price objective on Quanta Services from $471.00 to $515.00 and gave the company a "market perform" rating in a research report on Tuesday, February 24th. Argus lifted their price objective on Quanta Services from $540.00 to $650.00 and gave the stock a "buy" rating in a research report on Tuesday, February 24th. Stifel Nicolaus set a $647.00 target price on shares of Quanta Services in a research note on Monday, February 23rd. Finally, Truist Financial reaffirmed a "buy" rating and set a $643.00 price target (up from $548.00) on shares of Quanta Services in a research note on Friday, February 20th. Eighteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $587.91.

Quanta Services Stock Performance

Shares of PWR opened at $545.27 on Friday. The company has a current ratio of 1.14, a quick ratio of 1.09 and a debt-to-equity ratio of 0.58. The stock has a market cap of $81.58 billion, a P/E ratio of 80.19, a PEG ratio of 2.61 and a beta of 1.10. The company has a 50-day moving average of $528.41 and a two-hundred day moving average of $464.31. Quanta Services has a 12-month low of $227.08 and a 12-month high of $583.73.

Quanta Services (NYSE:PWR - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The construction company reported $3.16 EPS for the quarter, beating the consensus estimate of $3.02 by $0.14. Quanta Services had a net margin of 3.61% and a return on equity of 18.10%. The business had revenue of $7.84 billion for the quarter, compared to analyst estimates of $7.38 billion. During the same period in the prior year, the business earned $2.94 earnings per share. The company's quarterly revenue was up 19.7% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 12.650-13.350 EPS. As a group, research analysts predict that Quanta Services will post 9.34 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Norges Bank purchased a new position in Quanta Services during the fourth quarter worth approximately $817,285,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its stake in shares of Quanta Services by 57.2% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 2,425,436 shares of the construction company's stock valued at $917,009,000 after buying an additional 882,209 shares during the period. Bank of America Corp DE increased its holdings in shares of Quanta Services by 35.6% during the 3rd quarter. Bank of America Corp DE now owns 2,916,540 shares of the construction company's stock worth $1,208,672,000 after buying an additional 765,822 shares during the last quarter. Victory Capital Management Inc. raised its position in shares of Quanta Services by 35.2% in the 4th quarter. Victory Capital Management Inc. now owns 2,915,440 shares of the construction company's stock worth $1,230,493,000 after buying an additional 758,862 shares during the period. Finally, Corient Private Wealth LLC raised its position in shares of Quanta Services by 137.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,151,650 shares of the construction company's stock worth $486,065,000 after buying an additional 667,050 shares during the period. 90.49% of the stock is currently owned by hedge funds and other institutional investors.

Quanta Services Company Profile

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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