Beyond The Numbers: 7 Analysts Discuss Parsons Stock

During the last three months, 7 analysts shared their evaluations of Parsons PSN, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $97.57, a high estimate of $110.00, and a low estimate of $78.00. A decline of 14.94% from the prior average price target is evident in the current average.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Parsons is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Parsons. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Parsons compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Parsons's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Parsons's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Parsons analyst ratings.

Get to Know Parsons Better

Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

Breaking Down Parsons's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Positive Revenue Trend: Examining Parsons's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.07% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Parsons's net margin excels beyond industry benchmarks, reaching 11.61%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Parsons's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 8.51%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Parsons's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.68% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Parsons's debt-to-equity ratio is below the industry average at 0.59, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.