Recent analyst commentary on Quanta Services (PWR) has turned more upbeat, with Wolfe Research and Seaport Research highlighting the company’s exposure to power, gas, transmission, data center projects, and clean energy demand.
See our latest analysis for Quanta Services.
The recent upbeat research coverage has landed on a stock that already has strong momentum, with a 30 day share price return of 12.74% and a 1 year total shareholder return of 56.48%, while the 5 year total shareholder return is very large at more than 5x.
If you are watching how infrastructure and energy transition themes play out, it can also be useful to scan beyond a single name and see what stands out in fast growing stocks with high insider ownership.
With Quanta Services now trading around US$483 and sitting slightly above the average analyst price target, the key question is whether its strong recent run still leaves room for upside or if the market is already pricing in future growth.
Most Popular Narrative: 1% Overvalued
Quanta Services’ most followed narrative puts fair value at about $477, slightly below the last close of $483.43, which frames the current debate around how much optimism is already in the price.
The Fair Value Estimate has risen slightly from about US$474.38 to roughly US$477.25, reflecting modestly updated assumptions.
The Revenue Growth assumption has been trimmed from about 12.64% to roughly 12.16%, indicating a slightly more conservative top line outlook.
Want to see what is sitting behind that small move higher in fair value? The narrative leans on steadier growth, firmer margins, and a richer future earnings multiple, all tied together by one discount rate and a detailed earnings path that you can only assess properly in the full breakdown.
Result: Fair Value of $477 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upbeat narrative could be thrown off course if large project backlogs are delayed or if tight skilled labor markets squeeze margins on complex work.
Find out about the key risks to this Quanta Services narrative.
Build Your Own Quanta Services Narrative
If you are not fully on board with this view, or simply prefer to work from your own assumptions, you can create a custom Quanta Services narrative in just a few minutes with Do it your way.
A great starting point for your Quanta Services research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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