Parsons appointed as consultant for Dubai Metro Blue Line project

DUBAI - Parsons Corporation (NYSE:PSN), a $7.95 billion infrastructure engineering company with a "GREAT" financial health rating according to InvestingPro, has been appointed as the Project Management Consultant for the Dubai Metro Blue Line project by Dubai’s Roads and Transport Authority (RTA), according to a press release statement issued Tuesday.

The five-year contract involves Parsons providing comprehensive project management services including design review, procurement support, construction supervision, testing and commissioning oversight, and project handover management.

The Dubai Metro Blue Line, scheduled to begin operations in 2029, will span 30 kilometers and include 14 stations. The line will connect key districts including Mirdif, Dubai Silicon Oasis, Dubai Creek Harbour, and Dubai Festival City, with capacity to accommodate up to 320,000 passengers daily.

The project forms part of Dubai’s D33 Economic Agenda, which aims to position the emirate among the world’s fastest, safest, and most connected cities by 2033, while supporting Dubai’s 2040 Urban Master Plan for sustainable urban mobility.

"We are proud of our long-standing partnership with the RTA and are committed to working with their expert team on expanding the Dubai Metro network," said Pierre Santoni, President, Infrastructure EMEA at Parsons.

Malek Ramadan Mishmish, Director of Rail Planning and Project Development at the RTA, stated: "We are pleased to appoint Parsons as the project management consultant for the Dubai Metro Blue Line, particularly given the company’s extensive and proven experience in delivering projects awarded by the RTA since its establishment in Dubai."

Parsons has worked with the RTA since 2005 on transportation infrastructure projects including the Dubai Metro Red and Green Line, the Dubai Metro Route 2020 expansion, and the Dubai Intelligent Traffic Systems Center. The company’s stock is currently trading below its Fair Value, according to InvestingPro analysis, which offers detailed insights and 8 additional ProTips for this infrastructure leader. For comprehensive analysis, access the full Pro Research Report available exclusively to InvestingPro subscribers.

In other recent news, Parsons Corporation has announced the acquisition of Chesapeake Technology International (CTI) for $89 million. This acquisition is expected to bolster Parsons’ capabilities in electromagnetic warfare and all-domain solutions within the U.S. defense market. The integration of CTI into Parsons’ Defense & Intelligence unit is anticipated to be accretive to the company’s fiscal year revenue growth rate and adjusted EBITDA margin. Additionally, Raymond James has upgraded Parsons’ stock rating to Strong Buy, setting a $90 price target, citing de-risked estimates and growth opportunities in contracts with the Federal Aviation Administration and missile defense initiatives.

Stifel has maintained its Buy rating with an $81 price target for Parsons, highlighting the strategic alignment of the CTI acquisition with Parsons’ growth strategy. Truist Securities also reiterated its Buy rating, expressing confidence in the company’s 2025 growth outlook, suggesting that Parsons’ organic growth could accelerate significantly by the end of 2025. Furthermore, Parsons has teamed up with IBM to modernize the U.S. air traffic control system, enhancing the Federal Aviation Administration’s National Airspace System. This partnership aims to incorporate the latest technologies, promising a state-of-the-art system that supports travel, economic prosperity, and national security.

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