J.P. Morgan Maintains Overweight Rating On Quanta Services

According to J.P. Morgan, Quanta Services PWR discussed its Q1 results and outlook on a call this morning. J.P. Morgan said that although the project issues cited on the call appear largely relegated to 1H11, growing regulatory uncertainties limit near-term visibility, given its impact on key Power/Gas transmission projects. “We're lowering 2011-12E EPS accordingly, though PWR's growing backlog (+3% Q/Q, +17% y/y) suggest the intermediate-term outlook is largely intact, driven by Power and Telecom (where PWR sess double-digit growth in 2011). We're reducing our Gas revenue forecast to -30% in 2011 (and flattish in 2012), though a pick-up in bidding activity could drive upside.” Quanta Services closed yesterday at $19.12.