Piper Jaffray Overweight On Quanta Services (PWR)

Piper Jaffray has an Overweight rating and a $25 price target on shares of Quanta Services, Inc. PWR. In a note to clients, Piper Jaffray writes, "Investors seeking exposure to the rise in unconventional gas production have largely overlooked important aspects of global pipeline expansion: namely metering & data acquisition, pipeline control systems, gas processing & storage, welding equipment, and construction management. North American projects alone are expected to add nearly 41,000 miles of new pipelines by 2015 (current estimates are up 50% from 2010 predictions) and globally, spending on pipelines could top $190 billion in that timeframe. We believe investors have largely focused on resource, drilling, and exploratory companies to play the theme. We suggest a basket approach consisting of OW-rated ELT, GTLS, LECO, PWR and TLVT, which each stand to uniquely benefit from the multi-year construction cycle." Shares of PWR gained 53 cents yesterday to close at $22.81, a gain of 2.4%.