Quanta Services shares slide after Goldman trims price target, yet upside still seen
Goldman Sachs lowered its Quanta Services price target to $781 from $902 and kept a Buy rating, while the shares dropped 7.3%, according to Barron's.
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what happened
Quanta Services stock fell 7.3% on Thursday to $557.12, its steepest percentage drop since January 2025, Barron's reported, citing Dow Jones Market Data. Goldman Sachs analysts cut the target to $781 from $902 in a note on Wednesday and kept their Buy recommendation.
The new level implies roughly 30% upside from Wednesday's close of $601.14. The bank also lowered the multiple it applies to Quanta, to 26 times forward EBITDA from 30 times. The change reflects growing doubt about the valuations of companies tied to AI and power-grid spending.
Goldman still forecasts 20% annualized earnings-per-share growth through 2030, driven by transmission and distribution work, large utility projects and data-center demand. The bank also sees margin gains from expanding prefabrication and offsite manufacturing. Last month, Bernstein upgraded the stock to Outperform.
why it matters
The target cut shows investors are weighing more carefully how much AI-related power spending is already reflected in share prices. For the market, it signals that companies tied to data-center electricity demand are sensitive to changes in valuation assumptions. Analyst forecasts do not guarantee where the shares will trade.
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- Quanta Stock Falls on Target Cut, but Analysts See 30% Upside — Barrons.com, 22 October 2026 at 17:29 UTC
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