Senate Republicans to challenge auto safety mandates in January - WSJ
Investing.com - William Blair upgraded Parsons Corp. (NYSE:PSN) from Market Perform to Outperform on Thursday, citing the company’s alignment with key growth areas. The company, currently trading at $83.29 with a market cap of $8.87 billion, has seen its stock fluctuate between $54.56 and $101.92 over the past 52 weeks.
The upgrade comes as William Blair notes that Parsons is "highly aligned to four growth pillars," including the Trump administration’s Golden Dome project and air traffic control modernization initiative, U.S. infrastructure modernization, and the Middle East infrastructure boom. According to InvestingPro data, Parsons operates with a moderate level of debt and maintains strong liquidity with a current ratio of 1.67.
William Blair highlighted Parsons’ unique positioning as "one of the few contractors capable of serving as project manager and systems integrator" for major projects. The firm believes that the FAA contract and future Golden Dome work on Parsons’ existing TEAMS Missile Defense Agency contract vehicle are only partially reflected in consensus estimates and the current stock price.
The research firm pointed out that Parsons’ valuation multiple was approximately 30% higher last year compared to current levels, while valuation multiples for relevant peers have returned to near their highs. However, InvestingPro analysis indicates Parsons is currently trading at a high P/E ratio of 38.08, suggesting the stock may be overvalued compared to its Fair Value estimate.
William Blair projects that Parsons stock will appreciate by more than 20% over the next year as consensus estimates increase and the valuation multiple expands. Analyst targets range from $83 to $107, with the consensus recommendation leaning toward Buy. For deeper insights into Parsons’ financial health and comprehensive analysis, check out the Pro Research Report available on InvestingPro, which offers expert analysis on over 1,400 US equities.
In other recent news, Parsons Corporation reported its third-quarter 2025 earnings, which showed an earnings per share (EPS) of $0.86, surpassing analyst expectations of $0.75. Despite this EPS beat, the company’s revenue fell short of projections, coming in at $1.62 billion against the anticipated $1.67 billion. Additionally, Parsons has secured a position on the $15 billion Pacific Deterrence Initiative Multiple Award Construction Contract by the Naval Facilities Engineering Systems Command. This contract allows the company to compete for projects exceeding $100 million, including infrastructure and energy storage solutions.
Parsons also won a five-year contract to modernize the U.S. Coast Guard’s Biometrics at Sea System, enhancing the platform’s ability to collect and analyze biometric data. In analyst developments, UBS initiated coverage of Parsons with a Buy rating and a $107.00 price target. UBS highlighted expectations for growth in Parsons’ Federal Solutions segment, driven by strong bookings and a strategic acquisition approach. These developments underscore Parsons’ ongoing efforts in expanding its contract portfolio and technological capabilities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.