2023-03-28 09:27:12 ET
Parsons ( NYSE: PSN ) on Tuesday was upgraded to Outperform from an investment rating of Market Perform by analysts at William Blair. They said the government contractor is poised to benefit from higher spending on infrastructure, security and defense worldwide.
A recent example is a U.S. State Department contract awarded to Xator, a subsidiary of Parsons ( PSN ), for logistics services in Asia. The three-year contract is valued at $750 million.
“We do not think investors are aware of this contract, which has not been announced by Parsons ( PSN ),” Louie DiPalma, analyst at William Blair, said in a March 28 report. “We are under the impression that $250 million for the first year has already been funded, meaning that Parsons should be able to recognize that amount of incremental revenue if it is able to execute the contract and nothing is withdrawn. We believe it is potentially high-margin.”
Parsons’ ( PSN ) stock in the past year has risen 12%, contrasting with an 11% decline for the Standard & Poor’s 400 midcap stock index ( SP400 ).
For further details see:
Parsons upgraded to Outperform at William Blair on defense growth