Quanta Services (PWR) is poised for long-term growth as aging infrastructure and demand growth drive reinvestment, BofA Securities said in a Friday note as it initiated coverage on the company with a buy rating and a $407 price objective.

The firm said investments are needed in the repair, upgrade, expansion and maintenance of utility networks.

"Quanta has separated itself from others in the utility services space, becoming the premier solutions provider with a focus on partnering with utilities," the firm said. "While there is the potential for near-term disruption in renewable energy projects given the Trump administration's priorities, energy demand, and Quanta's role in meeting that demand, remains absolute."

BofA said the company has a "strong track record of execution," consistently increasing the top line and earnings over time.

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