BofA lowered the firm’s price target on Quanta Services (PWR) to $355 from $407 and keeps a Buy rating on the shares. China-based AI-startup DeepSeek having released its two newest LLMs with performance comparable to existing U.S. products and claims of notably lower training costs “upended the valuation of stocks with AI/energy demand exposure,” such as Quanta, on concerns that extended energy demand forecasts may fall short of current expectations, notes the analyst. The firm finds the derating of Quanta “outsized” given datacenters are an added tailwind, versus core to the story, but it lowers its price target to adjust for the derating of the comparable peer group on unchanged estimates.
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