Parsons Corporation (PSN) stock witnessed a sharp decline of 5.05% in the pre-market trading session on Friday, following a downgrade by analysts at TD Cowen.

The defense and engineering firm's stock took a hit after TD Cowen lowered its rating on Parsons from "Buy" to "Hold" and slashed the price target from $105 to $56. This negative analyst action contributed significantly to the plummet in the company's share price.

Analyst downgrades and price target revisions often carry substantial weight in the market, particularly for companies operating in sectors such as defense and engineering, where analyst views play a crucial role in shaping investor sentiment and stock valuations.