Parsons, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Hold rating on the stock and has a $90.00 price target.
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Gautam Khanna has given his Hold rating due to a combination of factors influencing Parsons’s current and future performance. The company has a promising pipeline with a record-level bid pipeline, including several high-value opportunities. Notably, Parsons is well-positioned to win a significant FAA modernization program, which could contribute substantially to its revenue. However, the potential impact of the Confidential contract poses a notable headwind in terms of sales and EBITDA in the coming years.
Despite these opportunities, Parsons faces challenges that temper expectations. The company’s future guidance remains cautious, with management affirming a moderate long-term organic sales growth objective. Additionally, while margins in certain segments are expected to remain stable, the overall outlook is influenced by external factors such as potential M&A activities and product expansion. These mixed prospects contribute to the Hold rating, as the stock’s current valuation reflects both its opportunities and risks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $90.00 price target.