Update shared on 06 Dec 2025
Fair value Decreased 3.52%Analysts have modestly reduced their price target on Parsons, trimming fair value by about 4 dollar to approximately 92 dollar per share. This reflects slightly lower long term revenue growth assumptions and valuation multiples, which more than offset improved margin expectations and a marginally lower discount rate.
What's in the News
- Won a $441 million design build contract with Emery Sapp and Sons to reconstruct and widen a key Interstate 70 segment in Missouri, with construction slated from 2026 through 2029 (company announcement)
- Secured a position on Sound Transit's 2025 $1 billion ceiling design services MATOC, supporting a $60 billion capital program including light rail extensions and system resiliency projects (company announcement)
- Named as an awardee on DTRA's CTRIC IV IDIQ MATOC, a $3.5 billion contract vehicle focused on global weapons of mass destruction threat reduction over up to 10 years (company announcement)
- Awarded a position on the $15 billion Pacific Deterrence Initiative MACC to deliver large scale DoD infrastructure projects across the Indo Pacific region (company announcement)
- Lowered 2025 revenue guidance to a range of $6.4 billion to $6.5 billion, down from the prior $6.48 billion to $6.68 billion outlook (company guidance)
Valuation Changes
- Fair Value: reduced modestly from about $94.90 to approximately $91.56 per share, reflecting a roughly 3.5 percent decrease.
- Discount Rate: edged down slightly from about 7.44 percent to around 7.41 percent, indicating a marginally lower perceived risk profile.
- Revenue Growth: eased slightly from roughly 6.03 percent to about 5.97 percent, signaling a small downward adjustment in long term growth expectations.
- Net Profit Margin: increased modestly from around 4.58 percent to approximately 4.72 percent, reflecting improved margin assumptions.
- Future P/E: moved down from about 34.8x to roughly 32.6x, representing a moderate reduction in the valuation multiple applied to future earnings.
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