Analyst Mark Palmer of Benchmark Co. reiterated a Buy rating on Par Technology, reducing the price target to $77.00.
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Mark Palmer’s rating is based on several factors that highlight the potential for Par Technology’s growth despite recent setbacks. The company’s second-quarter report led to a significant drop in share price, primarily due to timing issues rather than a decline in business prospects. Management indicated that while the organic annual recurring revenue growth might not meet the 20% target this year, the revenue is merely delayed, not lost. This suggests that the company’s fundamentals remain strong, and the current stock price dip presents an attractive opportunity for investors.
Furthermore, Par Technology is in advanced discussions with major restaurant brands for significant ‘megadeals,’ which could substantially boost its growth trajectory. The company’s efforts to enhance its product line to better compete for these deals demonstrate its strategic positioning within the point-of-sale industry. If Par secures even one of these deals, it could significantly accelerate its revenue growth into 2026 and beyond. Therefore, despite reducing the price target to $77, the Buy rating is reiterated, reflecting confidence in the company’s long-term potential.
In another report released on August 15, BTIG also upgraded the stock to a Buy with a $65.00 price target.