UBS Group Issues Positive Forecast for Parsons (NYSE:PSN) Stock Price

Key Points

• UBS Group raised Parsons’ price target to $64 from $61 and maintained a “Buy” rating, implying 27.65% upside from the prior close. Analysts overall give the stock a “Moderate Buy” consensus rating with a $63.50 average target.
• Parsons exceeded third-quarter expectations, reporting $0.89 adjusted EPS versus $0.78 expected and $1.65 billion in revenue versus $1.62 billion estimated. Backlog reached a record $9.4 billion, while adjusted EBITDA rose 6% to $168 million.
• Despite strong quarterly results and backlog growth, investors remain cautious because 2026 guidance was narrowed, organic revenue declined 1%, and CFO Matt Ofilos is departing on November 6; former CFO George Ball will serve as interim CFO.

Parsons (NYSE:PSN - Get Free Report) had its target price increased by stock analysts at UBS Group from $61.00 to $64.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's price target indicates a potential upside of 27.65% from the stock's previous close.

Several other research analysts also recently issued reports on the stock. Zacks Research upgraded shares of Parsons from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Truist Financial reaffirmed a "buy" rating and issued a $60.00 target price (down from $75.00) on shares of Parsons in a research note on Thursday, July 30th. Robert W. Baird raised shares of Parsons from a "neutral" rating to an "outperform" rating and boosted their target price for the stock from $48.00 to $57.00 in a research note on Friday, August 21st. Citigroup reduced their target price on shares of Parsons from $66.00 to $53.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, Jefferies Financial Group raised shares of Parsons from a "hold" rating to a "buy" rating and set a $52.00 price target on the stock in a research note on Sunday, August 2nd. Eleven research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Parsons has a consensus rating of "Moderate Buy" and a consensus target price of $63.50.

Parsons Price Performance

Shares of PSN traded down $0.38 on Thursday, hitting $50.14. The company's stock had a trading volume of 515,981 shares, compared to its average volume of 1,291,323. The company has a market capitalization of $5.36 billion, a PE ratio of 34.60, a PEG ratio of 4.13 and a beta of 0.72. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.66 and a quick ratio of 1.66. Parsons has a fifty-two week low of $36.26 and a fifty-two week high of $88.00. The company has a 50 day moving average price of $45.55 and a 200 day moving average price of $54.35.

Parsons (NYSE:PSN - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.78 by $0.11. Parsons had a return on equity of 8.10% and a net margin of 2.50%. The business had revenue of $1.65 billion for the quarter, compared to analyst estimates of $1.62 billion. During the same period in the prior year, the company earned $0.86 EPS. Parsons's revenue for the quarter was up 1.8% on a year-over-year basis. On average, research analysts anticipate that Parsons will post 2.06 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Parsons news, Director George Ball bought 20,000 shares of the business's stock in a transaction on Friday, August 7th. The shares were bought at an average cost of $47.97 per share, for a total transaction of $959,400.00. Following the transaction, the director owned 170,383 shares in the company, valued at approximately $8,173,272.51. This trade represents a 13.30% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.31% of the company's stock.

Institutional Investors Weigh In On Parsons

Several institutional investors have recently modified their holdings of PSN. MGO One Seven LLC bought a new stake in shares of Parsons during the third quarter worth $208,000. State of Wyoming lifted its position in Parsons by 242.2% in the 3rd quarter. State of Wyoming now owns 4,189 shares of the company's stock valued at $172,000 after acquiring an additional 2,965 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Parsons in the 3rd quarter valued at $320,000. Citizens Financial Group Inc. RI boosted its stake in Parsons by 2.9% in the 3rd quarter. Citizens Financial Group Inc. RI now owns 29,027 shares of the company's stock worth $1,189,000 after purchasing an additional 823 shares during the period. Finally, Reyes Financial Architecture Inc. acquired a new position in Parsons in the 3rd quarter worth $31,000. Institutional investors and hedge funds own 98.02% of the company's stock.

More Parsons News

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons reported third-quarter adjusted EPS of $0.89, above the $0.78 consensus estimate, while revenue of approximately $1.65 billion also exceeded expectations. Adjusted EBITDA rose 6% to a record $168 million, with the margin expanding to a record 10.2%. Parsons Reports Third Quarter 2026 Results
• Positive Sentiment: Record total backlog of $9.4 billion and funded backlog of $6.8 billion increased 6% and 7%, respectively. Net bookings of $1.8 billion produced a 1.1x book-to-bill ratio, while operating cash flow improved to $269 million from $163 million a year earlier. Federal Solutions awards increased 53% year over year. Parsons Q3 Revenue Reaches $1.7 Billion as Backlog Hits Record
• Positive Sentiment: Management expects its products business to grow 20%-30% in 2027, providing a potentially stronger growth catalyst after 2026. Parsons Expects Products Growth in 2027
• Neutral Sentiment: CFO Matt Ofilos will resign on November 6 to pursue another opportunity. Former CFO and current director George Ball will serve as interim CFO, offering continuity but adding uncertainty while Parsons searches for a permanent replacement. Parsons Announces Chief Financial Officer Transition
• Negative Sentiment: Investors appeared disappointed by the outlook: Parsons narrowed 2026 revenue guidance to $6.25 billion-$6.45 billion and adjusted EBITDA guidance to $510 million-$515 million. Q3 GAAP net income fell 16% to $54.2 million, and organic revenue declined 1%, reinforcing concerns about near-term growth.

Parsons Company Profile

Parsons Corporation NYSE: PSN is a technology-driven solutions provider serving government and commercial customers in the defense, intelligence, critical infrastructure and transportation markets. The company develops and integrates solutions for complex security, engineering and infrastructure challenges, combining software, systems engineering, cybersecurity, data analytics and program management capabilities.

Parsons operates through its Federal Solutions and Critical Infrastructure segments.

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