Goldman Sees Strong Utility Tailwinds for Quanta (PWR), Hikes Price Target to $414

On June 3, Goldman Sachs analyst Atidrip Modak raised the price target on Quanta Services Inc. (NYSE:PWR) from $364 to $414, while maintaining a Buy rating. Modak remains optimistic about the company’s long-term outlook, supported by sustained investment in utility infrastructure.

He highlights continued growth in transmission and distribution (T&D) spending as a key driver of Quanta’s revenue and valuation. While some investors have recently shifted focus to AI-related headlines, Modak believes this attention may be overemphasized, especially given Quanta’s limited exposure to data centers.

A technician working on an aerial view of a critical infrastructure, emphasizing the importance of the company’s utility services.

According to the analyst, data center-related work accounts for less than 10% of Quanta’s total revenue, which has helped redirect investor attention back to the company’s core operations tied to essential infrastructure upgrades.

Quanta’s management continues to emphasize the size and growth potential of the utility sector. As of May 2025, the company estimates its core addressable annual market to be over $156 billion.

Modak also notes rising investor confidence in Quanta’s role in energy transition and grid modernization, both of which support Goldman’s constructive view on the company’s fundamentals and valuation.

Quanta Services Inc. (NYSE:PWR) is a leading specialized contracting firm providing comprehensive infrastructure solutions to the utility, renewable energy, communications, and energy sectors. Its services span the design, installation, repair, and maintenance of electric power, pipeline, and communications infrastructure across North America and select international markets.

While we acknowledge the potential of PWR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PWR and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.