William Blair analyst Stephen Sheldon has reiterated their bullish stance on PAR stock, giving a Buy rating on May 6.
Stephen Sheldon’s rating is based on a combination of factors that suggest a positive outlook for Par Technology. Despite a somewhat messy first quarter with ARR slightly below consensus, the company demonstrated stronger-than-expected margins, particularly in its SaaS gross margins. A significant factor contributing to the Buy rating is PAR’s recent contract wins, including a notable agreement with Popeyes and the re-ramping of its rollout with Burger King. Additionally, PAR has successfully secured four out of seven tier-1 RFPs it pursued since 2024, which is a promising indicator of future growth.
Furthermore, PAR is targeting organic ARR growth of over 20% with expectations of revenue and profit acceleration in the latter half of 2025. The company’s strategic moves, such as reaching peak install velocity with Burger King and the potential revenue from the Popeyes contract, are expected to drive this growth. The combination of these factors, along with smaller wins and a record pipeline for TASK, positions PAR for a reacceleration in ARR growth and improved EBITDA later in the year, justifying the Buy rating.
In another report released on May 6, Lake Street also maintained a Buy rating on the stock with a $82.00 price target.