Parsons upgraded to Strong Buy at Raymond James as estimates rise

As previously reported, Raymond James upgraded Parsons to Strong Buy from Outperform with a price target of $95, up from $82. Parsons started 2024 with a beat of 6% and 9% on the revenue and AEBITDA lines, respectively, but the stock has dropped “inexplicably” in response, which creates an “attractive entry point,” the analyst tells investors. The company guided for $6.1B-$6.4B in 2024 revenue and the firm is taking its estimate up to $6.411B after “the strong start to the year and exceptional metrics,” while taking its EBITDA forecast up to $575M, noted the analyst. Budget certainty, strong business development, and sales that the firm thinks will exceed $7B by 2025 with future M&A “set the stage for the stock to approach $100 per share over the next 12 months,” the analyst added.