MANCHESTER, NH - Parsons Corporation (NYSE: NYSE:PSN), an infrastructure-focused company, has secured a $16 million contract to manage the Cemetery Brook Drain Tunnel Project in Manchester, New Hampshire. This initiative is part of the city's extensive efforts to mitigate flood risks and improve water quality in the Merrimack River.
The project, which is the city's largest public works endeavor to date, involves the construction of a two-mile long, 12-foot diameter tunnel situated 30 to 80 feet below ground. It will feature seven drop shafts to manage water flow. In addition to addressing the city's flooding and water quality challenges, the tunnel is a key component of Manchester's broader $338 million investment aimed at eliminating combined sewer overflow (CSO) discharges into the river, thereby securing its status as a source of clean drinking water.
Mark Fialkowski, President of North America Infrastructure at Parsons, emphasized the company's expertise in engineering and water management as crucial to the project's success. Parsons' history includes a portfolio of more than 250 tunnels and ocean outfalls worldwide, with experience in diverse and challenging geological conditions.
Beyond the tunnel, the city plans to use this project as an opportunity to enhance local infrastructure, including utility upgrades and the addition of pedestrian and cycling amenities.
Parsons, a company recognized for its role in critical infrastructure, brings 80 years of experience to the project, which is expected to span three years. The contract encompasses both program and construction management services.
In other recent news, Parsons Corporation has been experiencing significant developments. Stifel analysts have raised the price target for Parsons Corp . to $97.00, maintaining a Buy rating on the shares. This adjustment follows an in-person non-deal roadshow with the company's management team. The analysts expressed a positive outlook on Parsons' short to medium-term future, fueled by factors such as an uptick in new projects, higher win rates, and an increased bidding pipeline.
Parsons Corporation has reported record financial figures for the first quarter of 2024. Revenue reached $1.5 billion, marking a 29% organic growth. The company's adjusted EBITDA and contract awards also hit record highs, attributed to strategic investments in software, integrated solutions, and tech-focused acquisitions. Following these results, Parsons has increased its 2024 financial guidance.
Investment firm TD Cowen upgraded its rating on Parsons from Hold to Buy. The firm cited expected adjusted earnings per share growth of 18-20% for 2024-2025 and highlighted the company's strong market positions, robust booking trends, improving revenue mix, and attractive merger and acquisition strategy as key factors behind the upgrade.
Parsons Corporation was recently honored with the 2024 Innovation Transportation Solutions Award by the Women in Transportation Colorado Chapter for its work on the East Colfax (NYSE:ENOV) Avenue Bus Rapid Transit project in Denver. The project, The Lynx, is Denver's first BRT system and has been praised for its collaborative approach and sustainable design. These are the recent developments concerning Parsons Corporation.
InvestingPro Insights
As Parsons Corporation (NYSE: PSN) takes on the substantial Cemetery Brook Drain Tunnel Project, investors and industry observers are closely monitoring the company's financial health and market performance. With a robust market capitalization of $8.64 billion, Parsons is a significant player in the infrastructure sector. The company's commitment to tackling complex projects like Manchester's flood mitigation is reflected in its financial metrics, which show a solid revenue growth of 31.34% over the last twelve months as of Q1 2024.
InvestingPro data indicates that Parsons is trading at a high earnings multiple, with a P/E ratio (adjusted) of 98.28 as of the last twelve months. This valuation suggests that investors may have high expectations for the company's future earnings potential. Additionally, Parsons has demonstrated strong performance with a one-year price total return of 71.3%, underscoring the company's ability to generate investor interest and confidence.
InvestingPro Tips reveal that analysts predict Parsons will be profitable this year, which is a positive sign for potential investors. Moreover, the company's liquid assets exceed its short-term obligations, indicating a healthy financial position that could support ongoing and future projects. For those considering investing in Parsons, InvestingPro offers additional insights, with a total of 12 InvestingPro Tips available to help make informed decisions. To access these insights and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Overall, Parsons Corporation's involvement in the Cemetery Brook Drain Tunnel Project not only highlights its engineering prowess but also its promising financial trajectory as it continues to contribute to critical infrastructure development.
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