Quanta Services Stock Rises on Upgrade. Here’s Why Labor Is the Key.

A growing shortage of skilled workers needed to build data centers will likely accelerate Quanta Services ’ earnings at a faster rate than Wall Street expects, Bernstein analysts wrote Thursday. Bernstein upgraded Quanta to Outperform from Market Perform and raised its price target for the stock to $775 from $748, implying a 22% upside from its closing price of $634.90 on Wednesday. Labor constraints will emerge for the broader data-center buildout, to which Quanta has “invested aggressively to capture this opportunity,” the analysts wrote.