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 $90.00 price target.
Mayank Tandon has given his Buy rating due to a combination of factors that highlight Par Technology’s strong performance and promising future. The company concluded FY24 on a high note, surpassing expectations with its fourth-quarter results. This success is largely attributed to robust growth in their SaaS segment, which saw a significant year-over-year increase of approximately 25%. Customers are increasingly adopting multiple solutions from PAR, which is contributing to higher average revenue per user (ARPU).
Moreover, the management’s effective cost management and strategic investments are leading to an expansion in EBITDA margins. Notably, PAR secured eight new point-of-sale (POS) logos in the fourth quarter and strengthened its partnership with Burger King. These developments, coupled with the anticipated activation of new customers and the rollout of the expanded Burger King partnership, are expected to further boost SaaS growth and margin expansion in FY25. Despite a recent rally, the stock remains attractively valued, trading at a reasonable FY26 EV/revenue multiple. This positions the stock for potential upside surprises, supporting the Buy recommendation.
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