Bank of America Securities analyst Mariana Perez Mora reiterated a Buy rating on Parsons today and set a price target of $95.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mariana Perez Mora’s rating is based on a combination of factors that highlight Parsons’ strong fundamentals despite recent market underperformance. The company’s year-to-date performance has been negatively impacted by the loss of a confidential contract in Afghanistan, which was a result of a shift in government priorities. However, Mariana believes this reaction is exaggerated and does not reflect the robust business fundamentals. Parsons has a significant pipeline of opportunities, particularly in the critical infrastructure sector, which is expected to benefit from increased global infrastructure spending.
Additionally, Mariana points out Parsons’ substantial backlog and awarded contracts, which provide a solid foundation for future growth. The company’s Federal Solutions segment is well-positioned to capitalize on key budget line items and existing contract vehicles, allowing for quick deployment of funds. The focus on hard infrastructure by the current administration aligns well with Parsons’ portfolio, and the anticipated continued strength in the Middle East further supports the Buy rating. Mariana also notes the potential for improved earnings per share due to recent mergers and acquisitions, reinforcing the positive outlook for Parsons.
In another report released on August 7, KeyBanc also maintained a Buy rating on the stock with a $84.00 price target.