The U.S. grid is changing – adding more renewable energy. That creates new opportunities for many companies. An electric infrastructure developer is taking a bold step and trying to grab that big piece of cake.
(Marking PHR) On Thursday, Blatter – a renewable energy engineering and construction company – announced that it had acquired $ 2.36 billion in cash and $ 340 million in shares.
Blatter expects to generate about $ 315 million in revenue by 2021, before interest, taxes, depreciation and reductions. Quanta is paying 8.6 times that amount.
The cash comes primarily from the company’s new debt. Quanta now owes about $ 1.3 billion in balance. On Wall Street, in 2021, Ebida has lent $ 1.2 billion worth of projects to the company on a one-time basis.
The agreement will increase the renewable vulnerability to the Quantum grid business. Also, by 2022, Quantum’s bottom line is about 90 cents per share. As of Thursday, analysts estimate it will share $ 5.13 in 2022 revenue.
Quantum stock rose 11.4% on Thursday. Of
About 0.3%. Of
Dow Jones Industrial Average
Increased by about 0.4%.
“We believe what Quanta is for the electric solutions solutions industry, Blatner is a consumer of renewable energy solutions,” Quan CEO Duin Austin said in a statement. “Together, we will focus on what we believe are the most attractive areas of electrical infrastructure.”[Blattner] It will enhance our ability to work with our customers to transform North America into a carbon-neutral economy.
Blatner has completed or awarded more than 300 wind projects, 90 solar projects and 17 energy storage projects. Since 2006, the company has focused on renewable energy.
A.D. Renewable energy in the United States has increased from 386 billion kilowatt hours to 792 billion kilowatts by more than 100% since 2006. A.D. By 2020, it will be about 20% of the total electricity generation in the United States. A new generation is coming. The U.S. Energy Information Agency predicts that renewable energy will account for 42 percent of total electricity by 2050.
“The acquisition of Blatener will add a new dimension to Quantum’s energy infrastructure,” wrote Beir analyst Andrew Whitman. Statistically, investors may be more supportive of the transaction on energy transfer aspects. Vitman justified the purchase price. He buys Quantum shares and has a goal of $ 110. He did not update his estimate.
Vitman is not alone in his positive attitude toward stock. Quanta is popular with analysts. Buy Company Rates Share Buy more than 80% of analysts. The average buy-in ratio for shares in the S&P 500 is about 55%.
It was a good call recently. Quantum shares are up 56% today.
Of Baron In October, he wrote positively about Quanta, believing that he would benefit from the high capital expenditure on electricity infrastructure. As a result of that article, shares are up 90% compared to S&P 500 and Dao Jones Industrial Average of 31% and 24%.
Other electricity-based stocks will also move on Thursday.
MTZ stock increased 4.4%.
(MYR) stock gained 4.8%.
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