Parsons' Strength Of New Contracts Trigger Upgrade By This Analyst; Predicts Upside Of Over 20% Next Year

  • William Blair analyst Louie DiPalma upgraded Parsons Corp PSN from Market Perform to Outperform.
  • The analyst’s dotted Line contract tracker uncovered that Parsons very recently won a $750 million/3-year U.S. State Department contract for logistics services in Asia, which is entirely new work.
  • The analyst stated that Carey Smith, who took the helm as CEO of Parsons in April 2021, has revitalized the company.
  • RelatedParsons Stock Gains Following Receipt Of Two Contracts Worth Millions
  • Parsons has significant exposure to the Middle East (17% of total revenue)/Saudi Arabia, which is aggressively investing in new infrastructure.
  • Parsons serves as a key program manager for the Saudi Vision 2030 and Dubai 2040 infrastructure projects.
  • The analyst noted Parsons also has significant exposure to the U.S. Missile Defense Agency with its $2.2 billion, 10-year TEAMS contract.
  • The analyst sees over 20% upside to Parsons shares, driven by the expansion of Parsons multiple to the high end of its historical range on ramping infrastructure spend and rising consensus estimates.
  • Price Action: PSN shares are trading higher by 3.29% at $44.55 on the last check Tuesday.
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