3 Pipeline Stocks That Will Win From Sheehan Pipeline's Bankruptcy

Primoris Services Corp
, Quanta Services Inc
and MasTec, Inc.
would be the key beneficiaries from the bankruptcy filing of Sheehan Pipeline Construction Company, according to a note from Avondale Partners. Analyst Daniel Mannes noted that Sheehan, which filed for Chapter 11 bankruptcy last Friday, is a frequent competitor to PRIM/PWR/MTZ on union oriented pipeline work. "We see MTZ, PRIM and PWR as all benefiting but the effective removal of a major player and see the possibility of all adding key people and equipment going forward," Mannes wrote in a note. Among the three, the analyst said MTZ has already been a sizable beneficiary given the incremental work they picked up on DAPL project. Going forward, Mannes expects this to open up work on several projects in particular Rover and Atlantic Coast Pipeline (ACP) projects. Shares of Primoris rose 2.36 percent to $23.82, Quanta Services gained 1.06 percent to $22.87 and MasTec advanced 2.36 percent to $21.90. Mannes has a Market Outperform rating on all the three stocks.

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