Parsons Corp Drops 20.18% After Analyst Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
0mins
Should l Buy PSN?
Source: Newsfilter
Parsons Corp's stock fell by 20.18%, crossing down the 5-day SMA, following significant news regarding a lost contract.
The FAA awarded a multi-billion dollar air traffic control contract to competitor Peraton, leading to an 18.3% drop in pre-market trading for Parsons. Analysts from Raymond James downgraded the stock from Strong Buy to Market Perform, citing the contract loss as a major negative impact on future revenue projections.
This downgrade reflects a shift in investor sentiment, as many had previously viewed Parsons as a frontrunner for the contract. The implications of this loss may lead to further adjustments in revenue and EBITDA estimates, raising concerns about the company's future performance.
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Analyst Views on PSN
Wall Street analysts forecast PSN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSN is 84.00 USD with a low forecast of 70.00 USD and a high forecast of 107.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 69.440
Low
70.00
Averages
84.00
High
107.00
Current: 69.440
Low
70.00
Averages
84.00
High
107.00
About PSN
Parsons Corporation is a disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and electronic warfare, space and missile defense, transportation, water and environment, urban development, and critical infrastructure protection. Its Federal Solutions segment provides advanced technical solutions to the United States government. This segment provides advanced technologies, supporting national security missions in cyber operations, missile defense, and military facility modernization, logistics support, hazardous material remediation and engineering services. Its Critical Infrastructure segment offers integrated engineering and management services for complex physical and digital infrastructure around the globe. This segment is a technology innovator focused on next-generation digital systems and complex structures. It also develops advanced, warfighter-focused solutions for military and security applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Partnership: A $7 million strategic exchange agreement with SaverOne combines RF technologies with a security platform, potentially allowing VisionWave to control approximately 51% of SaverOne if milestones are met, thereby strengthening its market position.
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- Technology Readiness: Achieving a Technology Readiness Level 9 (TRL-9), DroneArmor™ provides real-time situational awareness and precise mitigation capabilities against drone threats, having successfully completed rigorous government testing before operational deployment, thereby improving response capabilities.
- Intelligent Integration: The system seamlessly integrates artificial intelligence and machine learning technologies, autonomously tracking, identifying, and mitigating potential threats, which reduces operator cognitive load, accelerates decision-making, and enhances overall security.
- Commitment to Innovation: As a modular and scalable command and control platform, DroneArmor™ combines radar, electronic warfare, optics, and AI-enabled software, demonstrating Parsons' commitment to rapid innovation and adaptability in addressing evolving threats.
See More
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- Historical Contribution: Parsons has led the design for each phase of this project over the past 25 years, and the company's continued involvement not only solidifies its leadership in infrastructure design but also lays the groundwork for future projects.
- Community Impact: By extending light rail options, Parsons will improve access for previously transit-restricted neighborhoods, enhancing mobility for residents and visitors, and further driving regional economic development.
See More
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- Project Background and Impact: This project will add a 2.3-mile extension to one of the world's longest light rail lines, connecting Pomona to Claremont, which is expected to enhance commuter and visitor access between downtown Los Angeles and the eastern parts of Los Angeles County, thereby promoting regional economic development.
- Sustainability Goals: Parsons is committed to providing innovative and sustainable solutions in design and construction, aimed at reducing traffic congestion, improving air quality, and ensuring safe and reliable access for commuters, reflecting the company's long-term dedication to infrastructure development.
- Historical Experience and Achievements: Since its founding in 1944, Parsons has amassed extensive experience in connecting California communities, having completed over 450 rail and transit projects, showcasing its expertise in infrastructure design and delivery.
See More
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- Technology Application Impact: During the pilot, Honda test vehicles equipped with advanced sensors achieved high-accuracy detection of roadway surfaces, markings, and roadside assets, significantly enhancing maintenance efficiency and reducing the need for manual inspections, thereby improving road safety.
- Data-Driven Decision Making: Real-time data analysis allows ODOT to optimize restriping schedules and maintenance plans, ensuring clarity and safety of road markings, which elevates overall traffic safety levels.
- Future Development Direction: Honda plans to scale the system's application in the future, encouraging drivers to participate in road safety through anonymized data sharing, promoting a community-focused approach to maintaining safe roadways.
See More
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- Contract Extension: Parsons has been awarded a $593 million extension under the FAA's Technical Support Services Contract 5 (TSSC 5), highlighting the company's ongoing influence in the aviation sector.
- Total Contract Value: TSSC 5 has a ceiling value of $1.8 billion, with a four-year base period and two three-year option periods; this extension exercises the first option period, ensuring service through 2030.
- Support for Investment Plans: This contract extension will support the FAA's Aviation System Capital Investment Plan (CIP), aiding in the modernization and safety of U.S. aviation infrastructure, thereby reinforcing Parsons' position in the government contracting market.
- Market Outlook: Through this contract, Parsons not only strengthens its partnership with the FAA but also lays the groundwork for future projects and investment opportunities, which is expected to drive long-term growth in the aviation sector.
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