William Blair analyst Louie DiPalma has reiterated their neutral stance on PSN stock, giving a Hold rating today.
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Louie DiPalma has given his Hold rating due to a combination of factors affecting Parsons. The company recently removed financial contributions from a significant U.S. State Department humanitarian aid contract from its 2025 guidance, which has raised concerns about the sustainability of this contract. This decision follows the closure of the office responsible for the contract and the dismissal of program officers, which many investors expected after a recent executive order.
Despite this, Parsons has several potential growth drivers, such as the FAA modernization initiative, infrastructure developments in the Middle East, and possible U.S. infrastructure legislation. However, the market is still adjusting to the removal of the contract from the financial outlook for 2025 and 2026. Investors are also seeking assurance that government procurement processes will stabilize by the crucial September quarter, which impacts the broader government tech industry.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $65.00 price target.