Parsons' Strength Of New Contracts Trigger Upgrade By This Analyst; Predicts Upside Of Over 20% Next Year

William Blair analyst Louie DiPalma upgraded Parsons Corp PSN from Market Perform to Outperform.
The analyst’s dotted Line contract tracker uncovered that Parsons very recently won a $750 million/3-year U.S. State Department contract for logistics services in Asia, which is entirely new work.
The analyst stated that Carey Smith, who took the helm as CEO of Parsons in April 2021, has revitalized the company.
Related: Parsons Stock Gains Following Receipt Of Two Contracts Worth Millions
Parsons has significant exposure to the Middle East (17% of total revenue)/Saudi Arabia, which is aggressively investing in new infrastructure.
Parsons serves as a key program manager for the Saudi Vision 2030 and Dubai 2040 infrastructure projects.
The analyst noted Parsons also has significant exposure to the U.S. Missile Defense Agency with its $2.2 billion, 10-year TEAMS contract.
The analyst sees over 20% upside to Parsons shares, driven by the expansion of Parsons multiple to the high end of its historical range on ramping infrastructure spend and rising consensus estimates.
Price Action: PSN shares are trading higher by 3.29% at $44.55 on the last check Tuesday.

Momentum21.68

Growth80.80

Quality58.25

Value26.02

Short

Medium

Long

Analyst Calendar