Samad Samana, an analyst from Jefferies, maintained the Hold rating on Par Technology (PAR – Research Report). The associated price target is $45.00.
Samad Samana has given his Hold rating due to a combination of factors surrounding Par Technology’s recent strategic acquisitions. The acquisition of the Australia-based restaurant platform TASK and C-store software provider Stuzo is seen as a bold expansion of Par’s total addressable market (TAM), with potential to enhance their software platform’s capabilities significantly. These acquisitions, which involved a substantial financial commitment of approximately $396 million collectively, are expected to contribute an additional $80 million in annual recurring revenue (ARR) and $20 million in adjusted EBITDA. This suggests that while the moves are ambitious and come with notable growth potential, there are also substantial risks and challenges associated with executing and integrating these new assets.
The TASK acquisition, in particular, provides Par Technology with a gateway to international markets, boasting over 110 enterprise customers across 70 countries, and includes high-profile clients such as McDonald’s and Starbucks. This sets the stage for Par to potentially cross-sell and expand internationally. Moreover, the acquisition of Stuzo represents a foray into the convenience store segment with attractive financial figures, including a strong growth and EBITDA margin profile that exceeds the rule of 40—a benchmark indicating healthy growth and profitability. Despite these positive aspects, the Hold rating implies that while the analyst recognizes the strategic merits and the financial uplift these acquisitions could provide, there is caution around the execution risks and the need for Par to prove it can capitalize on these opportunities without undue strain on its operations or financials.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on PAR:
- PAR Technology’s Strategic Acquisitions and Capital Expansion
- New Accounting & Financial Operations Risk for Par Technology – What’s the Latest?
- Par Technology price target raised to $55 from $50 at Craig-Hallum
- Par Technology price target raised to $48 from $42 at Lake Street
- Par Technology Corp: Upcoming Earnings Call and Webcast Invitation
