Parsons Corp shares rose 4% to $47.91 in morning trading on Friday after Baird upgraded the stock to Outperform from Neutral and raised its price target to $57 from $48.
The upgrade comes after Parsons secured a $350 million multiple-award indefinite delivery, indefinite quantity contract from the Naval Information Warfare Center Pacific. The agreement supports the Seabed to Space Intelligence, Surveillance, and Reconnaissance (ISR) program, which includes research, development, testing, and evaluation of advanced ISR systems for the U.S. Navy.
Parsons also highlighted a $400 million pipeline of other transaction adjustments that contributed no revenue in the first half of the year. The company expects these adjustments to begin contributing in the second half of 2026. Additionally, a $40 million ramp in the JCHK program and a protested $190 million award expected to clear are cited as drivers for a second-half acceleration in earnings.
The broader market advanced modestly, with the S&P 500 up 0.5% and the Dow Jones rising 0.8% during the session. Parsons’ stock had declined roughly 29% over the prior six months, trading well below its 52-week high of $89.50. The company’s forward revenue pipeline includes approximately $800 million in potential Federal Aviation Administration-related scope, further supporting growth prospects.
