Investment analysts at DA Davidson increased their price target for Quanta Services (NYSE: PWR) to $575 from $450 while leaving the stock's rating at Neutral. The action follows Quanta's robust fourth-quarter performance and a subsequent upward revision to the firm's earnings estimates based on those results.
Quanta's shares were trading at $556.16, close to a reported 52-week high of $554.64, having rallied roughly 97% over the past year. DA Davidson set the new price target at a valuation equal to 27 times its 2026 EBITDA forecast and 24 times its 2027 EBITDA estimate, reflecting what the firm described as sustained visibility into earnings growth and continuing customer spending momentum.
Despite that confidence in the company's near-term revenue trajectory, valuation metrics show a high current premium: Quanta was noted to trade at a price-to-earnings ratio of 80 and an enterprise-value-to-EBITDA multiple of 35.5. Analysis from InvestingPro, which provides fair value assessments across a broad set of US equities, flagged the stock as appearing overvalued at current levels.
DA Davidson emphasized Quanta's leading position in power and utility infrastructure and its exposure to emerging opportunities in complex facility development, supported by a sizable craft workforce. The firm characterized these secular demand drivers as unlikely to fade in the near term.
Nonetheless, the analyst cautioned that the company's present business drivers are "extraordinary" and said the firm would remain vigilant for potential share price dislocations. DA Davidson also stated that it does not see any immediate fundamental factors that would disrupt Quanta's expected earnings growth path despite the elevated multiples.
Recent financial results and peer responses
Quanta reported fourth-quarter 2025 earnings per share of $3.16, beating the consensus estimate of $3.12. Revenue for the quarter came in at $7.8 billion versus an expected $7.37 billion. Those results and the company’s fiscal 2026 guidance prompted a number of other brokerages to raise their targets.
- Truist Securities raised its price target to $643, citing the earnings beat and fiscal 2026 guidance that outpaced Wall Street expectations.
- BMO Capital lifted its target to $600, referencing strong fiscal 2026 guidance that was supported by acquisitions totaling more than $1.7 billion.
- Bernstein SocGen Group increased its target to $515, pointing to an expected 20% earnings growth in 2026 and meaningful growth opportunities across several sectors.
The company also recorded a 19.4% year-over-year increase in Electric Infrastructure sales during the period reported, and acquisitions contributed approximately $0.09 to EPS for the quarter. Analysts and the firm’s disclosures framed these elements as evidence of momentum and a positive near-term outlook.
What this means for markets and investors
The mix of strong operational results, upward revisions to guidance, and recent acquisitive activity has prompted multiple upward target moves by sell-side analysts, even as at least one major shop retained a Neutral stance because of valuation. Investors are therefore weighing durable demand drivers in power and utilities against historically rich valuation multiples.
DA Davidson’s commentary suggests continued monitoring for any price dislocations, while other brokerages have adopted more bullish targets in response to the quarter’s results and management’s forward-looking guidance.