Deutsche Bank Sees Robust Outlook For Quanta Systems

Following conference presentations with Quanta Services PWR this week suggest that the long-term outlook for transmission remains robust despite ongoing ear-term delays. While a key catalyst for Quanta has been pushed out, DB still believes share adequately reflect todays more challenging macro environment and balanced risk to Street estimates. Despite healthy long-term trends, there have been a few setbacks for Quanta's transmission group. Quanta wont be booking any Tehachapi-related business in Q3. Risks to the stock include delays in transmission related investments, increased competition in transmission and a worse than expected slowdown in gas and telecom spending. Deutsche Bank reiterates its Buy rating with a target price of $24 Quanta Services closed Wednesday at $18.50