Jefferies Lowers Price Target for Parsons Corp Amid Confidential Program Concerns

Published 2 hours agoPSN

Jefferies Lowers Price Target for Parsons Corp Amid Confidential Program Concerns

Jefferies analyst Sheila Kahyaoglu has downgraded the price target for Parsons Corporation's stock from $110 to $85, although the 'Buy' rating remains in place. The decision centers around uncertainties related to a significant confidential program anticipated to generate about $375 million in revenue by 2025, which is substantially less than its possible $575 million potential.

The program's performance is a critical factor as achieving its full potential could enhance earnings per share by 6%, potentially reaching $3.55. Despite these immediate concerns, Jefferies maintains a positive outlook, projecting a 15% upside for Parsons' stock, reflecting confidence in the company's long-term growth capabilities.

In the fourth quarter of 2024, Parsons reported record revenue of $1.7 billion, demonstrating a robust 16% increase compared to the previous year. This strong financial showing contrasts with the uncertainties surrounding the confidential program, highlighting the importance of its outcome for Parsons' future financial trajectory. Reuters has noted the importance for investors to keep an eye on how this situation unfolds, as it may significantly impact Parsons' market positioning.

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