Baird upgrades Parsons stock rating to Outperform on strong growth outlook

Published 07/08/2025, 09:50
Baird upgrades Parsons stock rating to Outperform on strong growth outlook

Investing.com - Baird upgraded Parsons Corp . (NYSE:PSN) stock rating from Neutral to Outperform on Thursday, while raising its price target to $92.00 from $78.00. According to InvestingPro data, the company currently trades at a P/E ratio of 34.5x and has demonstrated strong financial health with an overall score of 3.01/5.

The upgrade comes as Baird sees double-digit underlying organic growth across both of Parsons’ segments, with potential near-term catalysts related to FAA and Golden Dome projects that appear not yet reflected in the stock price.

Baird noted that estimates have been completely re-based following Parsons’ formal exit from a large confidential contract, positioning the company for clearer performance metrics going forward.

The research firm highlighted that Parsons’ organic growth rate exceeds that of industry peers and aligns well with current spending priorities in its target markets.

Baird identified award timing as the biggest risk factor, noting that Parsons’ outlook calls for just 1.0x book-to-bill in the near term, though the firm emphasized Parsons’ solid competitive positioning and elevated win-rates as positive indicators.

In other recent news, Parsons Corporation reported its second-quarter earnings for 2025, showcasing a mixed financial performance. The company exceeded earnings per share (EPS) expectations, achieving an EPS of $0.78, which was higher than the anticipated $0.749, marking a 4.14% positive surprise. Despite this, Parsons fell short on revenue projections, reporting $1.58 billion against a forecast of $1.61 billion, representing a 5% decline compared to the previous year. This revenue miss has raised concerns among investors. Additionally, there were no significant mergers or acquisitions announced during this period. Analyst firms have not issued any recent upgrades or downgrades for Parsons. These developments reflect the current state of the company’s financial health and market position.

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