More Taxes=More Government Spending, Citi Handicaps Who Benefits

Citi analyst, Andrew Kaplowitz, published a note highlighting the potential opportunities associated with higher government spending noting that the new legislation, for infrastructure and climate related policy companies, could represent multi-year tailwinds for service contractors including Quanta Services (NYSE: PWR), AECOM Technology (NYSE: ACM), Jacobs (NYSE: J), and MasTec (NYSE: MTZ) as well as HVAC related companies Trane, Inc. (NYSE: TT), Carrier Global (NYSE: CARR), and Johnson Controls (NYSE: JCI).

The analyst stated "Higher taxes = higher government spending — Likely tax increases should help support key Biden priorities such as infrastructure and clean energy, with companies exposed to these end markets as likely beneficiaries of Biden’s “Build Back Better” plan".

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