Parsons (NYSE:PSN) shares rose more than 2% intra-day today after BofA Securities upgraded the company to Buy from Underperform and raised its price target to $65.00 from $46.00, on stronger than expected growth from both organic and inorganic opportunities.
According to the bank, Parsons is poised to benefit from the improved market sentiment on government services and the potential opportunities linked to the US Infrastructure Bill.
Earlier this month, the company reported impressive earnings for Q2/23, once again exceeding Street estimates and raising its guidance for the full year.
The bank anticipates robust growth for Parsons, favorable prospects stemming from M&A, and improved sentiment in the end markets.
“On a macro level, PSN has done significantly better on a hiring and retention front and has benefitted from strong contracting activity. We see significant opportunities for growth as a result of increased global infrastructure spend, environmental remediation efforts, and cybersecurity,” added BofA Securities.