Par Technology (PAR – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mayank Tandon from Needham reiterated a Buy rating on the stock and has a $53.00 price target.
Mayank Tandon’s rating is based on a combination of key growth indicators and a comparative valuation perspective. Despite Par Technology’s first-quarter results falling short of expectations, Tandon has recognized the potential in the company’s increasing subscription revenue and annual recurring revenue (ARR), which demonstrate robust year-over-year organic growth. Additionally, the accumulation of significant new client agreements, including well-known brands, and the anticipation of reaching EBITDA breakeven in the third quarter of 2024 reinforce a positive outlook on the stock.
Furthermore, Tandon has identified an attractive valuation entry point, as Par Technology’s stock trades at a multiple that signifies a discount when compared to its industry peers. This valuation, coupled with the company’s solid performance in high-margin revenue streams and strategic new business acquisitions, lends credence to the favorable risk-reward scenario that underpins the Buy rating. Tandon’s analysis, therefore, suggests that the current market price of Par Technology represents a promising investment opportunity with a potential for appreciation towards his target price.
According to TipRanks, Tandon is a 3-star analyst with an average return of 2.2% and a 43.15% success rate. Tandon covers the Technology sector, focusing on stocks such as Par Technology, ACI Worldwide, and Exlservice Holdings.
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Par Technology (PAR) Company Description:
PAR Technology Corp. engages in the provision of software and hardware support services for the hospitality industry. It operates through the Restaurant/Retail and Government segments. The Restaurant/Retail segment offers point-of-sale (POS), food safety, and management technology solutions. The Government segment includes intelligence, surveillance and reconnaissance technology and services for federal agencies. The company was founded by John W. Sammon, Jr. in 1968 and is headquartered in New Hartford, NY.
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