Parsons (PSN) stock fell hard on Friday after the technology-driven solutions provider in the critical infrastructure and defense sector didn’t receive a government contract. The contract that the company missed out on was for an upgrade to the U.S. air traffic control system. Instead, it went to private company Peraton.
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Parsons investors had high hopes that the company would receive this contract, which is part of President Donald Trump’s One Big Beautiful Bill Act. Included in this is a provision of $12.5 billion to update the country’s air traffic control systems. Now that the actual recipient of the contract has been announced, PSN shareholders aren’t taking the news well, explaining why the stock is down today.
While Parsons couldn’t lock down the air traffic control contract, it did get one from the Defense Threat Reduction Agency. It was granted the Cooperative Threat Reduction Integration Contract IV, which is an indefinite-delivery, indefinite-quantity (IDIQ) multiple award task order contract that has a ceiling value of $3.5 billion. The base timeframe of the contract is five years with an option to extend the contract for another five years.
Parsons Stock Movement Today
Parsons stock was down 21.25% in pre-market trading on Friday, following a 1.88% rally yesterday. The stock has decreased 8.44% year-to-date and 13.84% over the past 12 months.
Is Parsons Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Parsons is Strong Buy, based on seven Buy and two Hold ratings over the past three months. With that comes an average PSN stock price target of $95.25, representing a potential 12.78% upside for the shares.
