FBR Capital Downgrades Quanta Services (PWR) to Market Perform

FBR Capital downgraded Quanta Services (NYSE: PWR) from Outperform to Market Perform with a price target of $22.00 (from $29.00).

Analyst Alex Rygiel commented, "Last Friday, October 16, Quanta Services preannounced lower-than-expected 3Q15 results due to a combination of softer revenue and lower profitability. We would identify a number of reasons for the shortfall, including the following: project delays within both electric transmission and pipeline; a shift in revenue mix toward smaller, low-margin projects; competitive pressures; and labor/equipment utilization inefficiencies, some of which we expect to continue to pressure results for several quarters. As a result, we are lowering our estimates for 2015, lowering our price target to $22 (from $29), and downgrading the shares to Market Perform (from Outperform). We suspect investors will be on the sidelines until there is (1) greater visibility into the bidding outlook for electric transmission in 2016 and beyond, and (2) a rebound in profitability, particularly within electric transmission."

For an analyst ratings summary and ratings history on Quanta Services click here. For more ratings news on Quanta Services click here.

Shares of Quanta Services closed at $18.74 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Uber Inc. (UBER) PT Raised to $96 at Tigress Financial Partners
• Alpine Income Property Trust (PINE) PT Lowered to $18 at Jones Trading