PAR Technology Shares Plunge Over 40%, Presenting Buying Opportunity

Shares of PAR Technology have experienced a significant decline, dropping over 40% year-to-date. This downturn has raised concerns among investors as the company’s growth has not met expectations. Despite this, some analysts see potential in the current situation, suggesting that the selloff may present a buying opportunity for long-term investors.

In the second quarter, PAR Technology reported a 16% year-over-year increase in organic annual recurring revenue (ARR). This growth, while steady, is anticipated to remain in the mid-teens in the upcoming quarters. The company is bolstered by a robust pipeline of over $100 million in new deals, which could further support its growth trajectory.

Long-Term Growth Drivers and Future Projections

Analysts highlight several key factors that could drive long-term growth for PAR Technology. The company is focusing on cross-sells and upsells, alongside an expansion into convenience stores. These strategies are expected to enhance its revenue streams and improve market positioning.

Additionally, analysts predict that free cash flow margins could expand significantly, potentially reaching 20% by 2028. This projection underscores the company’s commitment to improving its financial health and maximizing shareholder value.

Given the recent performance and the promising outlook, analysts have adjusted their recommendations for PAR Technology. The valuation appears compelling enough to prompt an upgrade from “Hold” to “Buy,” reflecting a more optimistic view of the company’s future.

Investors are advised to consider these insights carefully. Analyst disclosures indicate that there are no current positions held in PAR Technology, and no plans to initiate any within the next 72 hours. It is important to note that past performance does not guarantee future results, and no specific investment advice is being provided.

In conclusion, while PAR Technology faces challenges in meeting growth expectations, the potential for recovery and long-term success makes it a noteworthy consideration for investors looking for opportunities in the technology sector.