Impact of Significant U.S. Defense Contracts on Parsons (PSN) Investment Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: Nov 23 20250mins
Recent Contract Wins: Parsons Corporation has secured a position on a US$15 billion construction contract with the U.S. Navy and a contract to modernize the U.S. Coast Guard’s Biometrics at Sea System, showcasing its capabilities in national security and infrastructure.
Investment Outlook: The company forecasts $7.4 billion in revenue and $350.2 million in earnings by 2028, driven by a reliance on federal contracts, which poses risks if government budget priorities shift.
Market Positioning: The Pacific Deterrence Initiative contract enhances Parsons' standing as a preferred partner for U.S. defense infrastructure, potentially leading to future large-scale task orders and sustained growth in its government portfolio.
Valuation Insights: Analysts have assessed Parsons' fair value between US$81.71 and US$94.90, emphasizing the importance of considering diverse outlooks due to the company's heavy reliance on federal funding.
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Analyst Views on PSN
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 97.00 USD with a low forecast of 90.00 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.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 82.900
Low
90.00
Averages
97.00
High
107.00
Current: 82.900
Low
90.00
Averages
97.00
High
107.00
RBC Capital
Sector Perform
to
Outperform
upgrade
2025-12-02
New
Reason
RBC Capital
Price Target
2025-12-02
New
upgrade
Sector Perform
to
Outperform
Reason
RBC Capital upgraded Persimmon to Outperform from Sector Perform with a price target of 1,750 GBp, up from 1,375 GBp. The firm adjusted ratings in the UK housebuilders group as part of a 2026 outlook. With "little support" from the Budget and Royal Assent for the Infrastructure Bill, RBC prefers the "self-help and strategic land stories."
William Blair
William Blair
Market Perform -> Outperform
upgrade
2025-11-20
Reason
William Blair
William Blair
Price Target
2025-11-20
upgrade
Market Perform -> Outperform
Reason
William Blair upgraded Parsons to Outperform from Market Perform. The company is "highly aligned" to the "four growth pillars" of the GoldenDome project, the Trump administration's air traffic control modernization project, U.S. infrastructure modernization, and the Middle East infrastructure "boom," the analyst tells investors in a research note. The firm views Parsons as "uniquely positioned" as one of the few contractors capable of serving as project manager and systems integrator for "these plus mega projects." Blair believes the stock over the next year will rise over 20% as consensus numbers move higher.
UBS
Gavin Parsons
Buy
initiated
$107
2025-11-19
Reason
UBS
Gavin Parsons
Price Target
$107
2025-11-19
initiated
Buy
Reason
UBS analyst Gavin Parsons initiated coverage of Parsons with a Buy rating and $107 price target. Supported by strong bookings and a technology-focused bolt-on M&A strategy, growth is set to accelerate, led by Federal, with margin expansion across both segments, the analyst tells investors in a research note. Estimated EBITDA sits about 6% above consensus for next year and 7% above for 2027, supporting a premium valuation relative to peers, UBS says.
Stifel
Jonathan Siegmann
Buy
upgrade
$83 -> $94
2025-11-06
Reason
Stifel
Jonathan Siegmann
Price Target
$83 -> $94
2025-11-06
upgrade
Buy
Reason
Stifel analyst Jonathan Siegmann raised the firm's price target on Parsons to $94 from $83 and keeps a Buy rating on the shares. The company's Q3 results were "mostly" okay as strong margins offset revenues that were short of estimates, the analyst tells investors in a research note. While the firm is not yet seeing an acceleration of new awards in the Federal Solutions segment, it believes the stock is responding favorably to Parsons' suggestion that the FAA's decision on its multi-billion dollar modernization award is not impacted by the government shutdown and may occur imminently.
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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
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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.
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