Investing.com - Stifel initiated coverage on Parsons Corp . (NYSE: PSN ) with a buy rating and set a price target of $81.00, according to a research note released Monday.

The price target represents potential upside based on a valuation of 14 times the company’s projected 2026 EBITDA, reflecting a blended government service multiple above industry peers and a lower multiple for Parsons’ infrastructure segment.

Parsons, which provides technology-driven solutions in the defense, intelligence, and critical infrastructure markets, has seen its stock performance supported by its position in both government and infrastructure sectors.

Stifel identified several potential downside risks to its investment thesis, including unexpected federal budget disruptions and headwinds from slower-than-expected ramp-up of contract awards.

The firm also noted that staffing challenges and growing competitive pricing pressure from government initiatives could impact Parsons’ performance and valuation going forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.