MarketMoodz
Goldman hikes Quanta price target to $685 on AI-driven data-center demand
Goldman Sachs raised Quanta Services' price target to $685 from $495 and kept a Buy rating on Feb. 24, 2026, citing AI-driven data-center power demand. The call highlights how AI infrastructure spending could lift traditional engineering and services players.
Key Takeaways
- Goldman raised Quanta's target to $685 from $495 and reiterated Buy on Feb. 24, 2026.
- Quanta has surged about 111% in the last year and risen more than 30% in 2026.
- Q4 2025 beat on earnings and revenue; 2026 EBITDA guidance of $3.34–$3.50 billion vs. consensus $3.19 billion (FactSet).
- AI data-center buildout is boosting demand for power infrastructure, with a Zachry Group JV adding a new growth channel.
- Modak notes margins are unlikely to rise meaningfully from pricing; upside comes from labor efficiencies and new operating approaches.
People Involved
- Ati ModakGoldman Sachs Analyst
Entities Involved
- Quanta Services (PWR)Power-grid and infrastructure services provider
- Goldman SachsInvestment bank behind the price target and rating change
- Zachry GroupJoint-venture partner supporting gas power-generation facilities
MarketMoodz Analysis
The upgrade signals institutional appetite for AI-related infrastructure beneficiaries, potentially guiding allocations toward traditional service providers that enable AI rollouts rather than just software or hardware players. If the AI capex cycle sustains momentum, Quanta could benefit from multi-year capital expenditure cycles in transmission, distribution, and load-center projects.
From a historical lens, infrastructure names have traded on cycles in utility capex and energy demand. A rising EBITDA guide for 2026 paired with a margin profile that is not expected to expand materially suggests upside is tied to volume, mix, and efficiency gains rather than pricing power alone.
Watch for traction on the Zachry JV and any signs that labor efficiencies and new operating approaches translate into EBITDA leverage. Quarterly results beyond 2025's beat and further details on acquisitions aimed at technology and load-center capabilities will be key signals for investors.
Source: Original Article