UPDATE: Wedbush Reiterates Outperform Rating, Raises PT for Quanta Services
In a report issued earlier today, Wedbush Securities reiterated its Outperform rating for Quanta Services (NYSE: PWR) and raised its price target from $24.00 to $28.00.
Wedbush said in its report “Our target is based on 10.0x EV/EBITDA on 2012 estimates (previously 9.0x), which is a slightly lower multiple than Quanta's 10.7x long-term average rolling forward 12-month multiple, to account for market uncertainty. We use EV/EBITDA valuation methodology because of the company's substantial amortization from recent acquisitions, including the October 2009 acquisition of Price Gregory, and the more recent October 2010 acquisition of Valard. On an adjusted-EPS basis, shares of Quanta are trading at 21.0x and 16.7x times 2012 and 2013EPS, respectively, versus Transmission & Distribution comparables, trading at respective 15.4x and 10.4x multiples.”
Quanta Services closed yesterday at $23.50.
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