Quanta Delivers Solid 2023 Guidance; Raising Fair Value Estimate to $125

We are raise our fair value estimate for no-moat Quanta Services to $125 from $116 per share following its fourth-quarter results and 2023 outlook. Our fair value raise is driven by an increase to our revenue forecast over the next few years, particularly within the electric power and renewable infrastructure segments. We continue to like Quanta's end market exposure and solid execution, but view these as already reflected in its valuation. We see shares as overvalued.