Parsons price target raised to $97 from $90 at KeyBanc

KeyBanc raised the firm’s price target on Parsons to $97 from $90 and keeps an Overweight rating on the shares. The firm notes Parsons reported better than expected Q2 adjusted EBITDA and raised 2024 guidance more than the beat. The company should continue to benefit from its alignment to key government priorities such as cyber/intel, space/missile defense, defense modernization, and infrastructure spending that are providing it with multi-year visibility, KeyBanc adds. The firm believes the strong prospect pipeline, end market demand, and above average win rate position Parsons favorably for continued revenue growth momentum and margin improvement. KeyBanc expects to see more M&A activity to close out the year, which should add to margin accretive opportunities that move Parsons up the value chain.