On Friday, KeyBanc Capital Markets adjusted its stock price target for Parsons Corp . (NYSE:PSN), a technology-focused defense, intelligence, security, and infrastructure engineering firm, citing the company's alignment with increased infrastructure spending and defense priorities. The stock price target was raised to $90 from $89 while maintaining an Overweight rating on the stock.
The revised price target is based on a 17.0x multiple of the firm's estimated 2025 EBITDA. KeyBanc's assessment reflects confidence in Parsons Corp.'s potential for a sustained increase in revenue. The company's strategic positioning is seen as advantageous, especially as it stands to benefit from governmental expenditure in both infrastructure and defense sectors.
Furthermore, KeyBanc anticipates that Parsons Corp. will experience accelerated margin expansion as the company continues to mitigate risks and ascend the value chain. This expected financial improvement is attributed to the firm's strategic mergers and acquisitions, which are seen as accretive to its business, as well as the realization of revenue synergies.
Parsons Corp.'s Overweight rating is a signal of KeyBanc's positive outlook on the stock, implying that the equity is expected to outperform the average return of the stocks that KeyBanc covers. The slight increase in the price target suggests a modestly improved confidence in the company's future financial performance.
Investors and market watchers typically monitor such rating updates and stock price target changes closely, as they can influence market perceptions and potentially impact the stock's performance on the New York Stock Exchange.
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