UPDATE; D.A. Davidson Upgrades Quanta Services to Buy, Raises PT on Recent Decline, Increasing Prospects

In a report published Monday, D.A. Davidson analyst John B. Rogers upgraded the rating on Quanta Services PWR from Neutral to Buy, and raised the price target from $30.00 to $35.00. In the report, Rogers noted, “We are raising our rating on the shares of Quanta to BUY from Neutral with a 12-18 month price target of $35, up from $30. Our increased optimism is based on both the shares' recent decline and the increasing prospects for oil & gas pipeline investment over the next several years in North America as new low-cost resources are brought to market. The expected exploitation of recently developed gas & oil reserves in the U.S. and Canada, as well as replacement of existing infrastructure, will require multi billions of investment in new pipeline infrastructure (a list of major projects is attached). Although some of this work will be deferred by environmental and other concerns, we expect spending on pipelines to grow dramatically for the next several years.” Quanta Services closed on Friday at $26.70.