Parsons Corp. (PSN) PT Raised to $97 at Stifel

Stifel analyst Bert Subin raised the price target on Parsons Corp. (NYSE: PSN) to $97.00 (from $95.00) while maintaining a Buy rating.

The analyst commented: "Last week, we hosted an in-person NDR with the management team of Parsons and came away bullish on the company's near and medium-term prospects. We think there's been some concern Parsons is over-earning as they went from an investor day expectation of ~$4.88B in 2025 sales vs. our current ~$6.80B estimate. We still are not quite sure how to triangulate what "normal" organic growth looks like now (~17% CAGR) vs. then (~5% CAGR), but we think that rate will remain elevated for multiple years as new work ramps, win rates increase (49% in 2022, 66% in 2023 and 78% YTD), the bidding pipeline increases ($56B vs. $42B) and the macro environment continues to support more growth. Our important takeaway is that does not appear reflected in expectations for 2025 and 2026 and, as a result, we think rising EBITDA estimates and greater durability of earnings will drive shares higher."

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