Stock Price & Analysis

Based on recent market data and analyst reports, PSN stock has experienced significant volatility, with a notable decline of 10.04% on January 23rd. The stock is currently trading at $77.97, showing a modest gain of 1.38% in the most recent session.

Recent Key Events:

• PSN recently acquired TRS Group for $36 million, enhancing its environmental remediation capabilities [1,2]
• Multiple analysts have adjusted their ratings and price targets:
  • William Blair downgraded to Hold (Jan 23)
  • Raymond James downgraded to Market Perform (Jan 2)
  • Goldman Sachs upgraded to Buy with $111 target (Dec 12)

Technical Analysis: Current price ($77.97) is below the 20-day SMA of $85.11, indicating bearish short-term momentum. The RSI-14 at 27.87 suggests oversold conditions, potentially indicating a technical bounce opportunity.

Fibonacci Levels:

• Resistance: R1 at $82.83, R2 at $84.72
• Support: S1 at $76.68, S2 at $74.79

Analyst Consensus: Latest price targets range from $100-$111, suggesting potential upside of 11-19%. However, recent downgrades highlight concerns about:

• Contract renewal risks
• Tough year-over-year comparisons
• Premium valuation relative to peers

Based on the technical oversold conditions and recent acquisition news, but balanced against analyst concerns about contract risks and valuation, PSN stock appears to be a HOLD at current levels. The stock may see near-term support due to oversold conditions, but significant upside could be limited until contract renewal uncertainties are resolved.

Based on recent acquisition news and technical analysis, PSN stock is projected to reach $85-90 by end of 2025, driven by its strategic $36 million acquisition of TRS Group that strengthens its environmental remediation capabilities and defense market position. Technical indicators show the stock is currently oversold with RSI at 27.87 and has strong fibonacci resistance levels at $82.83 and $84.72, suggesting potential upward momentum from current $77.97 level. The company's focus on PFAS remediation services and growing state regulations in environmental cleanup provide fundamental support for this price target.

The S1 support level for PSN Stock is $76.68 ,The R1 resistant level for PSN Stock is $82.83.

As of the end of day on 2025-02-11, the price of PSN Stock was $78.02.

The target price for PSN Stock according to analyst rating is 112.57, with the highest price target at 130.00 and the lowest at 100.00. Analysts have a Strong Buy rating on PSN Stock overall.

The market cap of PSN is $8.3B.

Based on the provided data, I'll analyze if PSN is overvalued through multiple perspectives.

Valuation Analysis: PSN's Q3 2024 P/E ratio of 19.74x and EV/EBITDA of 146.96x indicate significantly elevated valuation levels compared to historical averages.

Recent Performance: The stock experienced a significant decline of -10.04% on January 23, 2025, following concerns about contract renewals.

Contract Risk: William Blair downgraded PSN to Market Perform due to elevated risk associated with the classified humanitarian U.S. State Department contract renewal in Q1 2025, which could represent approximately 10% of total revenue.

Growth Metrics: Q3 2024 shows revenue growth to $1.81B with improving net margins of 4.73%, though gross margins declined to 19.9% from 21.15% in Q1 2024.

Recent Acquisition: PSN acquired TRS Group for $36M on February 4, 2025, enhancing its environmental remediation capabilities, though this appears insufficient to offset the contract renewal concerns.

Based on elevated valuation metrics, significant contract renewal risks, and declining margins, PSN appears overvalued at current levels.

Parsons Corporation is a provider of solutions and services for the security environment, unprecedented global infrastructure demand and digital transformation. The Company operates through two segments: Federal Solutions and Critical Infrastructure. The Federal Solutions segment provides critical technologies, including cybersecurity; missile defense; intelligence; space launch and ground systems; space and weapon system resiliency; geospatial intelligence; signals intelligence; environmental remediation; border security, critical infrastructure protection; counter unmanned air systems, biometrics and bio surveillance. The Critical Infrastructure segment provides program management, design and engineering services, and owners representative support for complex physical and digital infrastructure around the globe. It develops digital solutions focused on aviation; rail and transit; bridges, roads and highways; leveraging sensors and data to drive smart sustainable infrastructure.

Based on the technical analysis and market data, Parsons Corp (PSN) stock is projected to reach $115-120 by 2030, driven by its strong defense contracts pipeline and infrastructure modernization initiatives. The company's strategic shift towards AI-enabled solutions and cybersecurity services positions it well for sustained growth in government spending. Current technical indicators showing oversold conditions at RSI 27.87 suggest significant upside potential from current levels over the long term.

PSN has a total of 18500 employees.