Persimmon beats expectations, shares rise By Investing.com

Written by Emily J. Thompson, Senior Investment Analyst

PSN+0.51%

Source: Investing.com

Updated: Jan 14 2025

0mins

Source: Investing.com

Strong Performance in Home Completions: Persimmon reported a 7% increase in home completions for 2024, delivering 10,664 homes, exceeding market expectations and driven by higher demand and strategic investments.
Financial Outlook and Challenges: The company anticipates its full-year profit before tax to be at the higher end of market expectations, while remaining cautious about macroeconomic uncertainties, yet confident in managing costs due to its strong land bank and vertical integration model.

PSN

$72.73+Infinity%1D

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 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

10 Buy

4 Hold

0 Sell

Moderate Buy

Current: 72.360

Low

70.00

Averages

84.00

High

107.00

Current: 72.360

Low

70.00

Averages

84.00

High

107.00

KeyBanc

Overweight

maintain

$76 -> $80

2026-01-20

New

Reason

KeyBanc

Price Target

$76 -> $80

AI Analysis

2026-01-20

New

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.

KeyBanc

Overweight

downgrade

$81 -> $76

2026-01-07

Reason

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.

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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."

BofA

Mariana Perez Mora

Buy

downgrade

$95 -> $90

2025-12-30

Reason

BofA

Mariana Perez Mora

Price Target

$95 -> $90

2025-12-30

downgrade

Buy

Reason

BofA analyst Mariana Perez Mora lowered the firm's price target on Parsons to $90 from $95 and keeps a Buy rating on the shares. The firm think that the reaction to the company being beat out by Peraton for the highly anticipated Brand New Air Traffic Control System integration contract was "overdone" and that fundamentals remain strong, but sees the valuation as pressured near term and lowered its adjusted EPS estimates in outyears to reflect a slow appropriations environment post shutdown, the analyst tells investors.

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.