Jefferies analyst Sheila Kahyaoglu lowered the firm’s price target on Parsons (PSN) to $100 from $110 and keeps a Buy rating on the shares. The firm says tough compares could weigh on the shares coming off of 23% organic growth in 2023 and 224 to 5% in 2025 and 2026. The analyst reduced estimates for Parsons on the tough comps and cut the stock’s multiple “on how wildly shares can move over unfounded news” in addition to Department of Government Efficiency fears. Jefferies believes Parsons is at risk of tough comps, not contract losses, as it will not have a hole of $550M, or 8% of sales, from a Department of State humanitarian contract for the foreseeable future.
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