Parsons Corporation's stock fell by 3.47% today, hitting a 20-day low amid a broader market decline, with the Nasdaq-100 down 0.51% and the S&P 500 down 0.26%.
This decline occurs despite Parsons securing an $88 million contract with the U.S. Air Forces in Europe for air defense operations at Ramstein Air Base, Germany. The contract enhances the total value of the Air Base Air Defense contract to $192 million by 2025, showcasing Parsons' ongoing commitment to defense solutions. However, the stock has been under pressure, down 30.8% over the past year, largely due to losing a significant government contract to a competitor, indicating a potential sector rotation.
The implications of this contract are significant, as it not only bolsters Parsons' revenue stream but also highlights the company's strategic positioning in the defense sector. Investors may view this as a potential opportunity, especially given the stock's current valuation below its historical average.
Wall Street analysts forecast PSN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSN is 84.00 USD with a low forecast of 70.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast PSN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSN is 84.00 USD with a low forecast of 70.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 71.710
Low
70.00
Averages
84.00
High
107.00
Current: 71.710
Low
70.00
Averages
84.00
High
107.00
Barclays
Overweight
maintain
$70 -> $78
2026-01-23
Reason
Barclays
Price Target
$70 -> $78
AI Analysis
2026-01-23
maintain
Overweight
Reason
Barclays raised the firm's price target on Parsons to $78 from $70 and keeps an Overweight rating on the shares. The firm adjusted targets in the machinery and construction group as part of a Q4 preview. Companies benefiting from interest rate cuts "still reign supreme," the analyst tells investors in a research note. Barclays anticipates "conservative" initial outlooks for 2026.
KeyBanc
Overweight
maintain
$76 -> $80
2026-01-20
Reason
KeyBanc
Price Target
$76 -> $80
2026-01-20
maintain
Overweight
Reason
KeyBanc raised the firm's price target on Parsons to $80 from $76 and keeps an Overweight rating on the shares. The firm visited KSA and UAE with Parsons' CEO Carey Smith and President-Infra EMEA Pierre Santoni. KeyBanc visited sites in Riyadh and Dubai and met with leadership teams in both. Putting both cities into context tells the firm "we are in very early innings of development in KSA given the Kingdom's drive to enhance tourism and its presence on the world entertainment/sporting event stage." Dubai, despite being decades into the development cycle, is still driving tremendous growth in infrastructure as population grows, KeyBanc points out. Parsons is strongly positioned in the area to benefit.
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KeyBanc
KeyBanc
Overweight
downgrade
$81 -> $76
2026-01-07
Reason
KeyBanc
KeyBanc
Price Target
$81 -> $76
2026-01-07
downgrade
Overweight
Reason
KeyBanc lowered the firm's price target on Parsons to $76 from $81 and keeps an Overweight rating on the shares. The termination of the confidential contract and the disappointment of being edged out of the FAA BNATCS award made for a disappointing year for Parsons, the firm says. KeyBanc thinks the market was over exuberant on the value for Parsons for the FAA contract, leading to an overreaction on the downside. The firm sees it as a positive since the company can now participate in the project on more equitable terms. While the growth rate in 2026 will suffer because of the two contracts, KeyBanc thinks it gives Parsons a chance to prove its capabilities in the FS segment via its alignment of resources to the administration's national defense priorities as it pursues roles for homeland security and Golden Dome.
BofA
Buy
downgrade
$95 -> $90
2025-12-31
Reason
BofA
Price Target
$95 -> $90
2025-12-31
downgrade
Buy
Reason
BofA lowered the firm's price target on Parsons to $90 from $95 and keeps a Buy rating on the shares. The company was beat out by Peraton for the Brand New Air Traffic Control System integration contract, the analyst tells investors in a research note. However, the firm thinks the share selloff on the contract loss was overdone. Parsons's fundamentals remain strong, particularly in its defense and critical infrastructure portfolio, but the stock's valuation will remain pressured near-term, the analyst tells investors in a research note. Heading into 2026, BofA expects defense and intelligence funding to remain strong, while civilian agency funding "remains a question mark."
About PSN
Parsons Corporation is a disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Its Federal Solutions segment provides advanced technical solutions to the United States government. This segment provides advanced technologies, supporting national security missions in cyber operations, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. Its Critical Infrastructure segment offers integrated engineering and management services for complex physical and digital infrastructure around the globe. This segment is a technology innovator focused on next-generation digital systems and complex structures. It also develops advanced, warfighter-focused solutions for military and security applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
