Jefferies analyst Sheila Kahyaoglu has maintained their neutral stance on PSN stock, giving a Hold rating today.
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Sheila Kahyaoglu’s rating is based on a combination of factors that reflect both opportunities and challenges for Parsons. The company has a substantial pipeline of potential contracts, with significant opportunities in both the Critical Infrastructure and Federal Solutions sectors. However, while there is a deep opportunity set, the execution and conversion of these into actual revenues remain uncertain, contributing to a more cautious outlook.
Furthermore, despite the promising growth prospects in the Middle East and the potential for double-digit growth in 2025, there are headwinds related to the confidential contract, which has been running below its contracted rate. This creates some uncertainty about future revenue contributions. Additionally, while the company is somewhat insulated from potential budget cuts due to its operations in protected areas, the overall environment remains challenging. These factors collectively justify the Hold rating, as they indicate a balanced risk-reward scenario for investors.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $65.00 price target.
PSN’s price has also changed moderately for the past six months – from $95.860 to $67.920, which is a -29.15% drop .