Update shared on 22 Nov 2025
Fair value Increased 4.16%Analysts have raised their price target for Parsons from $91.11 to $94.90. They cite expectations of stronger revenue growth, despite a modest decrease in projected profit margin and a slight uptick in discount rate and future price-to-earnings ratio.
What's in the News
- Parsons awarded a position on the $15 billion Pacific Deterrence Initiative Multiple Award Construction Contract by NAVFAC to deliver critical infrastructure projects across the Indo-Pacific region (Client Announcements).
- Secured a key contract to modernize the U.S. Coast Guard's Biometrics at Sea System, deploying advanced biometric capture and analysis devices for maritime law enforcement (Client Announcements).
- Completed the repurchase of 2,679,421 shares for $144.69 million since August 2021 as part of its ongoing buyback program (Buyback Tranche Update).
- Revised earnings guidance for fiscal year 2025, lowering expected revenue to between $6,400 million and $6,500 million (Corporate Guidance, Lowered).
- Awarded major program management and design engineering contracts for national security infrastructure and border facilities in the Middle East, enhancing Parsons’ global defense and infrastructure portfolio (Client Announcements).
Valuation Changes
- Fair Value: Raised from $91.11 to $94.90, reflecting a higher consensus analyst price target.
- Revenue Growth: Increased from 5.39% to 6.03%, indicating stronger expected sales expansion.
- Net Profit Margin: Lowered from 4.88% to 4.58%, suggesting a slight decrease in forecast profitability.
- Discount Rate: Increased marginally from 7.43% to 7.44%.
- Future P/E: Increased from 32.6x to 34.8x, implying a higher multiple being assigned to future earnings.
Disclaimer
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