Par Technology Buy Rating Reiterated Amid Anticipated Growth and Valuation Opportunity

Par Technology's stock has been reaffirmed as a Buy by Needham analyst Mayank Tandon, who expects growth to pick up in the second half of the year due to delayed Burger King rollout and other multi-product wins. The analyst also sees a compelling risk-reward scenario with the current valuation and anticipates accelerating ARR growth and improving EBITDA margins. Tandon maintains a target price of $90 and includes PAR on the Conviction List. Corporate insider sentiment is negative with an increase in insider selling over the past quarter.

PAR Technology Corporation (NASDAQ:PAR) has seen its stock reaffirmed as a "Buy" by Needham analyst Mayank Tandon, who expects growth to pick up in the second half of the year. The analyst cited the delayed Burger King rollout and other multi-product wins as key drivers for this optimism [1]. Tandon also highlighted a compelling risk-reward scenario with the current valuation, anticipating accelerating ARR growth and improving EBITDA margins. The analyst maintains a target price of $90 and includes PAR on the Conviction List [1].

Despite the positive outlook, corporate insider sentiment remains negative, with an increase in insider selling over the past quarter [1]. This could indicate a level of caution among insiders about the company's near-term prospects.

PAR Technology reported strong earnings for the second quarter of 2025, with revenue reaching $112.4 million, a 44% year-over-year increase. The company's earnings per share (EPS) of $0.03 surpassed the forecasted $0.02, marking a 50% surprise over expectations [1]. Subscription services revenue increased by 60% year-over-year, contributing to an annual recurring revenue (ARR) of $287 million, up 49% from the previous year [1]. The company's strategic initiatives and product innovations, particularly in online ordering and loyalty programs, have positioned it well within the competitive landscape [1].

However, the stock price fell by 13.84% in pre-market trading, closing at $56.1, despite the positive earnings surprise. This decline could be attributed to broader market trends or investor concerns over macroeconomic volatility affecting the quick-service restaurant (QSR) market [1].

Looking ahead, PAR Technology remains optimistic, targeting 20% organic ARR growth with expectations of mid-teens growth for 2025. The company is focusing on AI integration and product development, with a significant pipeline of $100 million, excluding mega deals. Potential global Tier 1 deals are anticipated in late 2025/2026, which could further bolster the company’s market position [1].

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-par-technology-q2-2025-beats-forecasts-stock-drops-93CH-3830098