Needham analyst Mayank Tandon has reiterated their bullish stance on PAR stock, giving a Buy rating today.
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Mayank Tandon has given his Buy rating due to a combination of factors that highlight Par Technology’s promising outlook. The company exceeded expectations in its third-quarter revenue results and maintained alignment with EBITDA projections, indicating robust performance despite uncertain macroeconomic conditions affecting the restaurant industry. Enterprises continue to invest in upgrading their technology, which benefits PAR’s multi-product approach, as shown by strong RFP activity. This positions the company for an acceleration in annual recurring revenue growth, potentially reaching over 20% year-over-year by early fiscal year 2026.
Furthermore, management’s focus on controlling expenses suggests a potential for ongoing improvement in EBITDA margins. With the stock trading at a reasonable enterprise value to revenue multiple of approximately 3.5 times the fiscal year 2026 estimate, the risk-reward profile appears attractive. As a result, Tandon reiterates a Buy rating, although the target price is adjusted to $55 to account for sector-wide multiple compression in the software industry.