UPDATE: Goldman Sachs Resumes Coverage on Quanta Services with Neutral Rating, $29 PT as Stock is at Cyclical Crossroad

In a report published Tuesday, Goldman Sachs analyst Brian Lee resumed coverage on Quanta Services PWR with a Neutral rating and $29.00 price target. In the report, Goldman Sachs noted, “We resume coverage of Quanta Services with a Neutral rating and a $29, 12-month price target, implying 1% downside. Quanta is a leading specialty contractor leveraged to power and energy infrastructure markets, with roughly 70% of revenue generated from building transmission and distribution (T&D) for the electric grid and the balance of its business largely focused on building pipeline transportation for natural gas and oil. We see Quanta at a cyclical crossroad, driving our view of even risk/reward: growth headwinds are emerging in US power following a more than decade-long investment upcycle even as a North American fossil fuel resurgence drives upside potential in pipeline projects, in our view.” Quanta Services closed on Monday at $29.67.