Parsons Corp. (PSN) Hit 20% After Losing in $12-Billion Air Traffic Control Bid

Core Insights - Parsons Corporation (NYSE:PSN) experienced a significant decline of 21.29% week-on-week due to losing a $1 billion air traffic control system contract to Peraton [1] - The Federal Aviation Administration (FAA) awarded a $12.5 billion contract to Peraton for overseeing and overhauling the US air traffic control system, citing Peraton's capabilities in integrating complex technology and collaborating with federal agencies [1] Company Response - Parsons Corporation acknowledged the air traffic control system as a critical priority for national air travel safety and security, emphasizing its long-standing support for the FAA [2] - The company expressed readiness to support the FAA on existing contracts and expand its role as an implementation partner [2] Market Reaction - Following the FAA's decision, investment firm Raymond James downgraded Parsons Corporation from strong buy to market perform, indicating a shift in investment sentiment [2] - The firm noted that while Parsons has potential, it believes that certain AI stocks may offer better returns with limited downside risk [2]