Deutsche Bank Lowers Quanta Services Estimates And Price Target

Deutsche Bank is lowering its Quanta Services, Inc. PWR 4Q EPS estimate by $0.09 (to $0.16; at the mid-point of mgmt's guidance) to incorporate lower sales and GMs and a higher tax rate ($0.01). “Key revisions to our 4Q est's include: -2% to sales (primarily Elec Powerdespite Valard acq), -300bps to GMs (partially due to the rain related cost overruns) and -60bps to opex:sales (despite $7.5mln in acquisition related costs),” Deutsche Bank writes. “In addition, we are lowering our 2011 sales and EPS estimates by $40mln and $0.20, respectively (despite the Valard acquisition which should add roughly $225- 250mln in rev and $0.03-0.06 to GAAP EPS).” Deutsche Bank is also lowering its price target from $24 to $20. Quanta Services currently trades at $17.94.