Bernstein said it's bullish on electric power infrastructure company Quanta Services "in a full embrace of the energy transition." "PWR owns the picks and shovels that will be used to make the energy transition a reality," analyst Chad Dillard wrote in a Monday note. The firm maintained its outperform rating on shares. It also kept its price target of $198 per share, implying 13.8% upside from Friday's close. Dillard estimated transitioning the entire U.S.
"The market underestimates the step-function change in revenue growth that this transition will bring: from +10% to +15%." Quanta's advantage in labor will further drive share gains and consolidation, he explained. "Labor will be a huge bottleneck and quanta controls it. To see this transition through, the US needs another 40K linemen and there is a mismatch between where the labor is and the construction will be.