Stock Price & Analysis

PSN stock is currently trading at 58.01 with a slight pre-market decline of -0.89%. While some analysts maintain a Buy rating, TD Cowen recently downgraded it to Hold, suggesting caution.

PSN Stock is predicted to reach $62 by the end of 2025, driven by stable market conditions and moderate growth expectations. The current price of $58.01 reflects pre-market adjustments, indicating potential for slight upward movement.

The S1 support level for PSN Stock is $55.35 ,The R1 resistant level for PSN Stock is $60.63.

As of the end of day on 2025-03-13, the price of PSN Stock was $56.69.

The target price for PSN Stock according to analyst rating is 81.14, with the highest price target at 98.00 and the lowest at 56.00. Analysts have a Moderate Buy rating on PSN Stock overall.

The market cap of PSN is $6.1B.

Analysis and Insights

To determine if Parsons Corp (PSN) is overvalued, we analyze its valuation metrics, financial performance, analyst sentiment, and technical indicators.

Valuation Metrics:

PSN's current valuation metrics include a PE ratio of 29.97, EV/EBITDA of 18.85, and a PB ratio of 4.08. These metrics are above industry averages, suggesting potential overvaluation compared to peers.

Financial Performance:

PSN reported revenues of $460.09M in Q1 2024, with a net profit of $54.18M. While revenues show growth, the high valuation multiples indicate that the market may be pricing in future growth expectations that are uncertain.

Analyst Sentiment:

Recent analyst ratings show mixed sentiment. Benchmark maintains a Strong Buy rating with a $90 target, while TD Cowen downgraded PSN to Hold, citing growth deceleration. This mixed sentiment reflects uncertainty about PSN's future performance.

Technical Analysis:

The stock's RSI is 29.97, indicating it may be oversold. However, the Fibonacci pivot at 58.21 suggests resistance, and the stock is trading near its lower Bollinger Band, indicating potential volatility.

Conclusion:

PSN appears overvalued due to high valuation multiples and mixed analyst sentiment. Investors should consider waiting for a price correction or improved fundamentals before investing.

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.

PSN stock is predicted to reach $65 to $70 by 2030, driven by its current undervaluation and potential revenue growth from recent acquisitions. The stock's Fibonacci levels suggest upside potential, with resistance at $60.93 and $62.61. Analysts expect a rebound as risks are already factored into the price.

PSN has a total of 18500 employees.