Goldman Sachs Neutral on Quanta Services
Goldman Sachs is out with a research report on Quanta Services, Inc. (NYSE: PWR) and it has a Neutral rating and a $20 price target on shares after "[t]he US State Department announced that it will perform an in depth assessment of alternative routes for the TransCanada Keystone XL pipeline in order to avoid environmentally sensitive areas."
In a note to clients, Goldman Sachs writes, " This is negative news for Neutral-rated PWR, and we expect the stock to underperform near-term. The bull case on PWR has been that the TransCanada Keystone XL pipeline would move forward by the end of 2011, and given the size of the project, it would eat up spare capacity in the market, driving up margins for additional pipeline projects. In our view, with this announcement, the bull case has effectively been delayed by at least a year."
Shares of PWR lost 70 cents yesterday to close at $18.94.
