Analysts’ Opinions Are Mixed on These Conglomerates Stocks: Ideal Power (NASDAQ: IPWR) and Quanta Services (NYSE: PWR)

By Jason Carr

Analysts have been eager to weigh in on the Conglomerates sector with new ratings on Ideal Power (NASDAQ: IPWR) and Quanta Services (NYSE: PWR).

Ideal Power (NASDAQ: IPWR)

FBR Capital analyst Carter Driscoll reiterated a Buy rating on Ideal Power (NASDAQ: IPWR) on May 12 and set a price target of $6. The company’s shares opened today at $2.54, close to its 52-week low of $2.

Driscoll commented:

“Still waiting for customers to roll out storage. Ideal Power reported 1Q17 revenues and EPS that missed our and consensus estimates as the energy storage market is still in its early rollout stage and the ramp remains hard to predict. As positive as the reset of the California self-generation incentive program (SGIP) was for energy storage in mid 2016, it has not yet accelerated deal closures with Ideal Power’s partners. We believe 2017 remains a heavily back-half-loaded year, driven by the commercial rollout of the new Stabiliti 30 kW product for stand-alone storage and SunDial solar inverter product for the solar plus storage market. The rollout was slated to begin in 2Q, but the scope of the primary customer’s needs has expanded, pushing out the launch until 3Q17, but potentially expanding the addressable market. Longer term, the B-TRAN power semiconductor device, EV charging initiatives, and international expansion position the company well beyond 2017. While we do not believe the opportunity set is diminished, the timing of adoption is largely out of Ideal’s control.”

According to TipRanks.com, Driscoll is ranked 0 out of 5 stars with an average return of -9.7% and a 38.5% success rate. Driscoll covers the Industrial Goods sector, focusing on stocks such as Ballard Power Systems, Amer Superconductor, and Hydrogenics Corp.

Currently, the analyst consensus on Ideal Power is Moderate Buy and the average price target is $4.50, representing a 77.2% upside.

In a report issued on May 12, Oppenheimer also reiterated a Buy rating on the stock with a $4 price target.
Quanta Services (NYSE: PWR)

FBR Capital analyst Alex Rygiel reiterated a Hold rating on Quanta Services (NYSE: PWR) on May 12 and set a price target of $40. The company’s shares opened today at $32.45.

Rygiel noted:

“After updating for certain 10-Q and other accounting items, we are adjusting our estimates for PWR.”

According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 16.0% and a 73.3% success rate. Rygiel covers the Industrial Goods sector, focusing on stocks such as Granite Construction Inc, Masonite International, and Orion Group Holdings.

Quanta Services has an analyst consensus of Moderate Buy, with a price target consensus of $42.50.

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