UBS moved up its price target on Quanta Services to $646 from $518 and reaffirmed a Buy recommendation after management released fourth-quarter results that showed broader-than-anticipated backlog increases across multiple business lines. The investment bank cited the company’s continued ability to expand backlog and its reliance on mergers and acquisitions as central to upside risk in its financial outlook.
Quanta Services, which supplies infrastructure services to utilities, technology firms, and other markets, has been executing a strategy that positions it as an integrated solutions provider supported by a large, skilled workforce. UBS said that strategy has driven consistent double-digit growth through execution and that acquisition activity remains a core component of the company’s growth profile.
Market data shows the shares have rallied substantially over the last 12 months, with a year-over-year gain of 97%. The stock was trading at $557.34, close to its reported 52-week high of $554.64, and is up 31% year-to-date, according to InvestingPro information. UBS highlighted additional prospective upside tied to major electric grid and power generation programs that have not yet been booked in backlog but are nearing realization within a reasonable investment timeframe.
Investors and sell-side analysts reacted to Quanta’s quarterly disclosure by adjusting models and targets. Truist Securities raised its target to $643 after noting the company surpassed expectations on fourth-quarter results and set fiscal 2026 guidance above Wall Street estimates. Quanta reported fourth-quarter 2025 adjusted earnings per share of $3.16, topping the consensus estimate of $3.12, with Electric Infrastructure sales showing notable improvement.
BMO Capital Markets increased its target to $600, pointing to the company’s completion of acquisitions totaling more than $1.7 billion that supported stronger fiscal 2026 guidance. DA Davidson lifted its price objective to $575, and Cantor Fitzgerald established a $630 target, citing strong demand and active risk management. Bernstein SocGen Group also raised its target to $515, referencing robust momentum and projected earnings gains for 2026.
Despite the wave of upward revisions, InvestingPro analysis signals the shares may be trading above their Fair Value metric. The company currently trades at a price-to-earnings ratio of 80.41, a valuation figure reflected in InvestingPro commentary and tools that include further tips and a Pro Research Report for PWR.
Analysts at UBS emphasized that the combination of backlog expansion and continued M&A activity provides tangible upside to earnings assumptions, particularly as several large programs in electric grid and generation move closer to being booked. The firm maintained its Buy rating, reflecting confidence in the company’s strategy and anticipated execution.
Overall, the broad reaction among brokerages to Quanta’s fourth-quarter results has been positive, with multiple firms raising price targets and increasing earnings estimates after the company reported better-than-expected results and issued bullish guidance. The moves by UBS and other analysts reinforce an optimistic consensus on near-term growth drivers while leaving valuation and the timing of large program bookings as points of focus for investors.
What to watch next
- Whether major electric grid and power generation programs move into backlog and the timeline for those bookings.
- Integration outcomes and financial contribution from the acquisitions totaling over $1.7 billion.
- How valuation metrics, including the current P/E of 80.41, are reconciled with sustained earnings acceleration.