Parsons downgraded to Market Perform from Outperform at Raymond James

Raymond James downgraded Parsons (PSN) to Market Perform from Outperform without a price target While 2023 and the first 11 months of 2024 were the best periods for the government service sector in more than 20 years, a new administration, a “provocative group” of political appointee nominations, and President-elect Trump’s Department of Government Efficiency’s “have significantly dented investor psyche,” the trading multiples, and halted stock momentum over the last 45 days, the analyst tells investors in a research note. The firm believes the “dislocation in equities has created opportunities” across its government IT coverage. It made four rating changes heading into 2025. Parsons has the highest sector multiple and trades at a “significant premium” to peers and its historical averages, contends Raymond James.