PARSONS (+) : Growth and Margin Improvement Not Priced In - Initiate at Outperform

研报英文原文证据摘录

PARSONS (+) : Growth and Margin Improvement Not Priced In - Initiate at Outperform

EQUITIES

AEROSPACE & DEFENSE

PARSONS OUTPERFORMPRICE* USD51.8  TARGET PRICE USD65 (UPSIDE 25%)

Growth and Margin Improvement Not Priced In – Initiate at

Outperform

We see Parsons returning to group-leading organic growth as it laps a large contract loss and as26 MAY 2026

Securities Research Report customer infrastructure investments continue to ramp, with margins moving higher as well. We

Production time: 11:16* (London time)

initiate coverage with an Outperform rating and $65 price target (25% total return).

Research Analysts & Publishing Entities

Matthew Akers, CFA Industry-leading growth can return

BNP Paribas Securities Corp1 Parsons has seen growth decelerate on a couple of large contract losses, but we view these as either

+1 (201) 951-5967

matthew.akers@us.bnpparibas.com one-time (State Dept. contract) or less impactful than feared (FAA contract). PSN laps this tough

compare later this year, and estimates look too low at MSD organic growth in 2027-28 (vs +DD in

Cashen Keeler

’26 ex its large contract). At its Critical Infrastructure segment, we think recent backlog growth (+DD%BNP Paribas Securities Corp1

+1 (201) 989-2413 since 2021), along with ambitious Middle East infrastructure plans like Saudi Vision 2030 and

cashen.keeler@us.bnpparibas.com continued upside from the US infrastructure act in 2021 (IIJA), will translate to growth ahead of Street

Luke Leone, CFA (we are 3%/6% ahead for 2027/28). Overall, with organic growth returning near the high end of PSN’s

BNP Paribas Securities Corp1 peer group by 2027, we see PSN’s premium valuation vs peers returning (~15% average 2020-25).

+1 (201) 772-1868

luke.leone@us.bnpparibas.com