Parsons downgraded to Neutral from Outperform at Baird

Baird downgraded Parsons (PSN) to Neutral from Outperform with a price target of $69, down from $72. The stock’s risk/reward appears balanced after the recent outperformance and with “high binary risk” on its the company’s $725M annual revenue contract for a confidential humanitarian customer. The contract is currently under Trump administration review and current contract vehicle expires in February regardless. the analyst tells investors in a research note. Baird believes Parsons’ Federal segment “will be carrying this overhang for some time.”