Quanta Services stock dropped Thursday after Goldman Sachs slashed its price target for the electrical infrastructure company, reflecting growing skepticism about the artificial-intelligence spending boom. Still, analysts see plenty of room for the stock to recover.
Shares of Quanta fell 7.3% to $557.12, putting them on track to their largest percent decrease since January 2025, according to Dow Jones Market Data.
The stock is up 32% since Barron's recommendation in October 2025.
Goldman Sachs analysts lowered their price target for Quanta to $781 from $902 and maintained a Buy rating in a note Wednesday. The new target implies roughly 30% upside from Wednesday's closing price of $601.14.
The price-target cut stems from growing uncertainty about the valuations of companies exposed to AI and power infrastructure spending. Goldman lowered the valuation multiple it assigns Quanta to 26 times forward earnings before interest, taxes, depreciation, and amortization, or Ebitda, down from 30 times.
The analysts remained bullish, forecasting annualized earnings-per-share growth of 20% through 2030 for Quanta.
They expect Quanta, which is among the biggest beneficiaries of AI-driven electricity demand, to report sustained growth in its transmission and distribution business.
Large utility projects will likely be a key driver, with growing demand from AI data centers providing an additional boost, the analysts argued.
Goldman also sees opportunities for Quanta to improve its profit margins by expanding its prefabrication and offsite manufacturing capabilities, allowing the company to complete more work before equipment reaches construction sites.
Wall Street has largely held a bullish view on Quanta in recent weeks.
Last month, Bernstein upgraded Quanta to Outperform from Market Perform, as analysts argued the company would benefit from a growing shortage of skilled workers needed to build data centers.
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