The effort to upgrade the U.S. power grid is heating up rapidly, according to UBS, which says the trend could be a driver for Quanta Services stock.
Analyst Steven Fisher wrote in a Monday note that "electric grid investment is entering a new phase of growth, with renewables activity accelerating and large transmission projects gaining momentum."
Fisher attributed the growth of these large scale projects to the IRA, which contained about $350 billion in funds for investments into renewable energy and updating the power grid.
"For Quanta, we believe the implications of this new phase include potentially faster top-line growth, higher margins and increasing scope on projects," Fisher said.
In addition to large transmission projects already planned, Fisher updated the list to include Oregon Public Utility Commission's Boardman to Hemmingway as well as Colorado's Power Pathway and Ready Wyoming .
Persons:
Steven Fisher, Fisher, Boardman, Michael Bloom
Organizations:
UBS, Biden
Locations:
Oregon, Hemmingway, Wyoming