Truist Financial analyst Tobey Sommer maintained a Buy rating on Parsons (PSN – Research Report) today and set a price target of $80.00.
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Tobey Sommer has given his Buy rating due to a combination of factors that highlight Parsons’ strategic positioning and growth potential. Despite mixed first-quarter results, Sommer is optimistic about the company’s prospects, particularly in the second half of the year, where management has reiterated guidance for strong growth. Parsons’ limited reliance on U.S. Federal funding and minimal exposure to consulting work are seen as advantageous, aligning with over half of the appropriations in the FY25 Department of Defense budget, which could drive above-peer growth.
Furthermore, Parsons demonstrated solid underlying growth, with critical infrastructure revenue increasing significantly, and profitability exceeding expectations. The company’s alignment with strategic priorities, such as defense spending and infrastructure modernization, positions it well for future opportunities. Sommer has raised the price target to $80, reflecting confidence in Parsons’ ability to capitalize on these opportunities and achieve sustained growth.
According to TipRanks, Sommer is a 5-star analyst with an average return of 9.1% and a 57.63% success rate. Sommer covers the Industrials sector, focusing on stocks such as FTI Consulting, Brink’s Company, and Huron Consulting.
In another report released on April 17, Bank of America Securities also maintained a Buy rating on the stock with a $100.00 price target.