Gianni di Poce sees an increase of around 33% for Quanta Services PWRas it is at the forefront of modernizing the aging and decaying US power grid.

The average age of installed large power transformers (LPTs) in the US is approximately 38 to 40 years, with 70% of LPTs 25 years or olderreported the US Department of Energy.

“I’m bullish on PWR as long as the stock stays above $132.00-$134.00,” Di Poce reported in his weekly Benzinga Pro insider report. “My upside target is $195.00-$200.00.”

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Quanta’s fastest-growing segment is its renewable energy division, which has grown to 22% of revenue so far this year, compared to 13% in 2021, Di Poce reported.

“Quanta has a significant backlog of business, which bodes well for future earnings,” Di Poce wrote. For the company’s power infrastructure solutions, the total is $12.98 billion and its 12-month order increased to $7.19 billion from $6.11 billion last year, he said.

Last year, Quanta reported $12.98 billion in revenue and $485.96 million in profit.

The Houston-based company has quarterly free cash flow of $306.07 million and a strong stock repurchase program. From January to October 2022, Quanta repurchased 1,054,122 shares of its outstanding common stock on the open market for $126.8 million and on October 31, 2022, Quanta’s stock repurchase program authorized additional repurchases of up to approximately $346.0 million -dollars of common stock.

From a technical perspective, Quanta is breaking out of a cup and handle formation, suggesting a strong rally is imminent.

In the first three quarters of 2022, Quanta reported approximately $12.66 billion in revenue and $329 million in profit.

As the company reports its fourth quarter results on February 22, 2023, which is usually a strong quarter, this can also be a positive Catalyst for…