Raymond James downgrades Parsons to Outperform on challenging setup

Raymond James downgraded Parsons (PSN) to Outperform from Strong Buy with an unchanged price target of $115. The next six month setup for government services could be challenging given the “exceptional returns,” material multiple expansion and Street expectations that have continued to move higher, the analyst tells investors in a research note. The firm believes this setup could pressure higher multiple stocks in the sector. It cites these concerns for the downgrade of Parsons.