Analyst Note
| Brett Castelli |Shares of no-moat Quanta Services have continued their outperformance year-to-date, rising 29% versus 12% for the S&P 500. Over a five-year timeframe, the company’s performance is even more impressive, rising at a 41% annualized pace compared with 11% for the S&P 500. We raise our fair value estimate to $132 per share from $125 after revisiting our long-term growth assumptions, but continue to see shares as overvalued (trading 40% above our fair value estimate).