Citigroup Cuts Parsons (NYSE:PSN) Price Target to $65.00

Key Points

• Citigroup cut its price target on Parsons to $65.00 from $70.00 while keeping a "buy" rating, implying roughly a 28.8% upside from the recent share price (~$50.47).
• Analyst consensus remains a Moderate Buy with an average target of $78.17, though several firms (UBS, Barclays, Truist, others) have trimmed targets or adjusted ratings recently.
• Parsons reported a mixed Q1: an EPS beat ($0.79 vs. $0.70) but a slight revenue miss ($1.49B vs. $1.51B), while adjusted EBITDA margin hit a record 10.1% and backlog rose to $9.3B, and management reiterated FY2026 guidance.

Parsons (NYSE:PSN - Get Free Report) had its target price dropped by investment analysts at Citigroup from $70.00 to $65.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Citigroup's price objective would suggest a potential upside of 28.79% from the company's current price.

PSN has been the topic of several other reports. UBS Group cut their target price on shares of Parsons from $104.00 to $95.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th. Robert W. Baird reissued a "neutral" rating and set a $60.00 target price on shares of Parsons in a research note on Monday, April 13th. Barclays reduced their price target on Parsons from $78.00 to $70.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 31st. Truist Financial lowered their price objective on Parsons from $85.00 to $75.00 and set a "buy" rating for the company in a research report on Monday, April 20th. Finally, KeyCorp downgraded Parsons from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, April 14th. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Parsons presently has a consensus rating of "Moderate Buy" and an average target price of $78.17.

Parsons Trading Up 0.3%

Shares of Parsons stock traded up $0.17 on Thursday, reaching $50.47. The company had a trading volume of 1,268,720 shares, compared to its average volume of 1,273,527. The firm's 50 day moving average price is $57.24 and its two-hundred day moving average price is $67.87. The firm has a market cap of $5.34 billion, a PE ratio of 22.93, a PEG ratio of 1.61 and a beta of 0.73. Parsons has a 52-week low of $49.38 and a 52-week high of $89.50. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.75 and a current ratio of 1.75.

Parsons (NYSE:PSN - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $0.79 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.70 by $0.09. The business had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.51 billion. Parsons had a net margin of 3.79% and a return on equity of 11.81%. The business's revenue was down 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.60 EPS. Sell-side analysts predict that Parsons will post 2.99 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Parsons

Institutional investors and hedge funds have recently bought and sold shares of the stock. Savvy Advisors Inc. purchased a new stake in Parsons in the third quarter valued at $1,683,000. WINTON GROUP Ltd acquired a new stake in Parsons during the 3rd quarter worth $2,042,000. Retirement Systems of Alabama boosted its stake in Parsons by 63.3% during the 3rd quarter. Retirement Systems of Alabama now owns 93,860 shares of the company's stock worth $7,783,000 after purchasing an additional 36,384 shares during the period. ArrowMark Colorado Holdings LLC boosted its stake in Parsons by 212.5% during the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 125,000 shares of the company's stock worth $10,365,000 after purchasing an additional 85,000 shares during the period. Finally, Wolverine Asset Management LLC acquired a new stake in Parsons during the 3rd quarter worth $1,369,000. 98.02% of the stock is owned by hedge funds and other institutional investors.

More Parsons News

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: EPS beat — Parsons reported $0.79 EPS vs. $0.70 consensus, ahead of expectations, which supports profitability narrative and helped limit downside. Zacks: Parsons (PSN) Surpasses Q1 Earnings Estimates
• Positive Sentiment: Profitability and backlog strength — Adjusted EBITDA hit a Q1 record with margin expanding to 10.1%, and total backlog rose to a record $9.3B (funded $6.6B), giving revenue visibility and supporting future revenue. GlobeNewswire: Parsons Reports First Quarter 2026 Results
• Neutral Sentiment: Guidance reiterated — Management reiterated FY2026 guidance (revenue range reported ~ $6.5B–$6.8B, roughly in line with consensus), which removes a large surprise but may not excite investors given the mixed quarter. GlobeNewswire: Parsons Reports First Quarter 2026 Results
• Neutral Sentiment: Investor materials and call available — Management hosted the Q1 earnings call and published slides/transcripts (helpful for detailed model updates and analyst questions). MarketBeat: Listen to Conference Call / View Slide Deck
• Negative Sentiment: Revenue miss and decline — Q1 revenue was $1.49B vs. $1.51B consensus and fell about 4% year-over-year (organic decline 8%); top-line weakness is the primary driver of investor concern today. Yahoo Finance: Parsons Misses Q1 CY2026 Revenue Estimates
• Negative Sentiment: Net income down — GAAP net income and some cash metrics declined year-over-year (net income down ~$13M vs. prior year), which tempers the EPS beat and indicates margin gains aren’t fully offsetting lower sales. GlobeNewswire: Parsons Reports First Quarter 2026 Results

About Parsons

Parsons Corporation NYSE: PSN is a technology-driven engineering, construction, technical and professional services firm. The company delivers end-to-end solutions that span feasibility studies, design and engineering, construction management, system integration and ongoing operations support. Parsons serves both government and commercial clients and focuses on critical infrastructure, defense, security, intelligence and environmental programs.

Core services include program and construction management for transportation systems, water and environmental infrastructure, cybersecurity and advanced systems integration.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.