Parsons (PSN – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mariana Perez Mora from Bank of America Securities reiterated a Buy rating on the stock and has a $110.00 price target.
Mariana Perez Mora’s rating is based on the strong alignment of Parsons’ portfolio with key Department of Defense (DoD) priority areas, such as missile defense, counter-unmanned aircraft systems, offensive cyber capabilities, and border security. Despite challenges related to a confidential contract, the underlying strength of Parsons’ portfolio remains intact, which supports the Buy rating. Additionally, the company’s involvement in initiatives like the US Golden Dome and its existing work with Israel’s David’s Sling further highlight its strategic positioning in defense projects.
Furthermore, Parsons’ management is leveraging the current stock price to engage in accretive share buybacks, which is viewed positively. The company’s capital deployment strategy is opportunistic, taking advantage of the deflated share price while maintaining a focus on mission-critical solutions. Although the stock has experienced a decline due to timing concerns with a confidential contract, the company’s recent $250 million share repurchase authorization underscores its commitment to enhancing shareholder value.
In another report released on March 24, Robert W. Baird also maintained a Buy rating on the stock with a $72.00 price target.