Stifel Nicolaus Lowers Parsons (NYSE:PSN) Price Target to $66.00

Key Points

• Stifel Nicolaus lowered Parsons’ price target to $66 from $79 while maintaining a “buy” rating, implying roughly 54% upside from the prior close. Analysts overall rate the stock “Moderate Buy,” with an average target of $71.36.
• Parsons reported a quarterly loss of $0.06 per share, far below the $0.76 consensus estimate, while revenue of $1.59 billion narrowly missed expectations and declined year over year. Management also reduced fiscal 2026 revenue guidance to $6.2 billion-$6.5 billion.
• Despite the earnings weakness, bookings and backlog remained positive, with a 1.2x book-to-bill ratio, contract awards up 24%, and backlog near $9.3 billion. The stock traded at $42.85 after rising 6.3%, while insiders purchased 32,500 shares over the past 90 days.

Parsons (NYSE:PSN - Get Free Report) had its price objective lowered by investment analysts at Stifel Nicolaus from $79.00 to $66.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Stifel Nicolaus' target price points to a potential upside of 54.03% from the stock's previous close.

Several other research firms have also commented on PSN. Robert W. Baird reaffirmed a "neutral" rating and set a $60.00 price target on shares of Parsons in a research report on Monday, April 13th. Truist Financial restated a "buy" rating and issued a $60.00 target price (down from $75.00) on shares of Parsons in a research note on Thursday. KeyCorp cut Parsons from an "overweight" rating to a "sector weight" rating in a research report on Tuesday, April 14th. Jefferies Financial Group reissued a "hold" rating on shares of Parsons in a report on Wednesday, July 8th. Finally, Zacks Research raised shares of Parsons from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Nine equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Parsons presently has an average rating of "Moderate Buy" and an average price target of $71.36.

Parsons Stock Up 6.3%

Shares of PSN stock traded up $2.53 during trading hours on Thursday, reaching $42.85. 2,107,277 shares of the company's stock were exchanged, compared to its average volume of 1,311,291. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.55. The company has a market cap of $4.58 billion, a price-to-earnings ratio of 20.53, a P/E/G ratio of 1.96 and a beta of 0.66. Parsons has a fifty-two week low of $36.26 and a fifty-two week high of $89.50. The stock's 50 day moving average is $55.45 and its 200-day moving average is $58.38.

Parsons (NYSE:PSN - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.82). Parsons had a return on equity of 11.52% and a net margin of 3.62%.The business had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.61 billion. During the same period in the prior year, the business posted $0.78 EPS. Parsons's revenue was down .5% compared to the same quarter last year. Analysts predict that Parsons will post 2.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director George L. Ball acquired 10,000 shares of Parsons stock in a transaction on Wednesday, May 13th. The stock was bought at an average cost of $50.00 per share, for a total transaction of $500,000.00. Following the completion of the transaction, the director owned 150,383 shares of the company's stock, valued at approximately $7,519,150. The trade was a 7.12% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Mark Keith Holdsworth bought 10,000 shares of the company's stock in a transaction dated Tuesday, May 12th. The stock was bought at an average price of $51.27 per share, for a total transaction of $512,700.00. Following the transaction, the director owned 39,918 shares of the company's stock, valued at approximately $2,046,595.86. This trade represents a 33.42% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders purchased 32,500 shares of company stock worth $1,637,325. Company insiders own 1.31% of the company's stock.

Institutional Investors Weigh In On Parsons

Several institutional investors have recently bought and sold shares of PSN. Aster Capital Management DIFC Ltd acquired a new position in shares of Parsons during the fourth quarter valued at approximately $25,000. Versant Capital Management Inc increased its position in shares of Parsons by 183.6% during the second quarter. Versant Capital Management Inc now owns 553 shares of the company's stock worth $29,000 after purchasing an additional 358 shares in the last quarter. Danske Bank A S purchased a new stake in shares of Parsons during the fourth quarter worth approximately $31,000. Los Angeles Capital Management LLC acquired a new position in Parsons in the 4th quarter valued at $32,000. Finally, ST Germain D J Co. Inc. acquired a new position in Parsons in the 4th quarter valued at $41,000. 98.02% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Parsons

Here are the key news stories impacting Parsons this week:

• Positive Sentiment: Parsons reported a 1.2x quarterly book-to-bill ratio, with contract awards up 24% year over year. Federal Solutions bookings increased 51%, while total backlog reached approximately $9.3 billion, supporting future revenue visibility. Parsons Reports Second Quarter 2026 Results
• Positive Sentiment: Critical Infrastructure revenue rose 5% year over year, and Parsons cited continued demand, Middle East-related resilience and strategic contract wins as factors supporting its long-term growth outlook. Parsons Reports Second Quarter 2026 Results
• Neutral Sentiment: Barclays lowered its PSN price target from $70 to $60 but maintained an “overweight” rating. The revised target still implies substantial upside, although the reduction signals increased near-term caution following the results. Barclays Price Target Update
• Negative Sentiment: Parsons reported quarterly EPS of negative $0.06, versus the consensus estimate of $0.76 and $0.78 a year earlier. Revenue was approximately $1.59 billion, slightly below the $1.61 billion consensus and down about 1% year over year. Parsons Reports Q2 Loss
• Negative Sentiment: Management cut fiscal 2026 revenue guidance to $6.2 billion-$6.5 billion from expectations of roughly $6.7 billion. Portfolio-shaping actions and charges tied to a joint-venture program contributed to the quarterly loss, raising concerns about execution and earnings visibility. Parsons Slashes Full-Year Guidance
• Negative Sentiment: The earnings shock drove PSN to a new 52-week low, indicating that investors are prioritizing the near-term profit and guidance deterioration over the company’s healthy bookings and backlog. Parsons Reaches New 12-Month Low

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.

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