Gavin Parsons, an analyst from UBS, has initiated a new Buy rating on Parsons (PSN).
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Gavin Parsons has given his Buy rating due to a combination of factors that highlight Parsons’s strong positioning in key markets and its growth potential. The company is well-placed in the Federal Solutions sector, benefiting from increased budgets in the Department of Defense and Intelligence, which are expected to drive significant growth. This alignment with fast-growing budget areas is anticipated to result in a 10% average core organic growth from 2026 to 2028, surpassing the peer average.
Additionally, Parsons’s exposure to US infrastructure investments and Middle East megaprojects supports its valuation premium over its peers. The company’s strategy of bolt-on mergers and acquisitions further enhances its capabilities and market reach, with a focus on Federal Solutions and Critical Infrastructure. With a sustainable premium valuation and a strong growth trajectory, Parsons is positioned to capture large federal programs, justifying the Buy rating and the $107 price target.
According to TipRanks, Parsons is a 4-star analyst with an average return of 8.3% and a 64.65% success rate. Parsons covers the Industrials sector, focusing on stocks such as Boeing, Hexcel, and Booz Allen.
In another report released on November 7, Bank of America Securities also reiterated a Buy rating on the stock with a $95.00 price target.