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Investing.com - Benchmark lowered its price target on PAR Technology (NYSE:PAR) to $77.00 from $92.00 on Tuesday, while maintaining a Buy rating on the restaurant technology firm’s shares. According to InvestingPro data, the stock currently trades at $52.25, with analyst targets ranging from $50 to $97.
The price target reduction follows PAR Technology’s second-quarter 2025 earnings report, which triggered a sharp drop in its share price. The main concern centered around the company’s organic annual recurring revenue (ARR) growth potentially falling short of its 20%+ target this year. The company’s revenue growth remains strong at 45.7% year-over-year, though profitability remains challenging with an EBITDA of -$48.7 million.
PAR Technology’s management clarified during the earnings call that the revenue in question would be delayed rather than lost. The company is currently fine-tuning its product line to compete more effectively for three Tier 1 enterprise restaurant megadeals. With a current ratio of 1.7, PAR maintains adequate liquidity to support its growth initiatives. Get deeper insights into PAR’s financial health and growth potential with InvestingPro, which offers 8 additional key insights about the company.
Benchmark noted these potential deals could "redefine [PAR’s] growth trajectory and competitive position within the point-of-sale (POS) industry" if secured.
Despite lowering the price target, Benchmark characterized the post-earnings share price decline as "an opportunity rather than a red flag," citing PAR Technology’s "strong fundamentals and robust pipeline."
In other recent news, PAR Technology Corporation reported its second-quarter 2025 earnings, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.03, surpassing the forecasted $0.02. Revenue also outperformed projections, totaling $112.4 million compared to the anticipated $110.82 million. Despite these positive financial results, PAR Technology’s stock experienced a decline in pre-market trading. Additionally, Taco Bueno, a Tex-Mex quick-service restaurant chain, has chosen PAR Technology as its unified technology partner. This partnership involves deploying PAR’s point-of-sale and hardware solutions across Taco Bueno’s 140 locations. The collaboration aims to modernize operations and improve the guest experience at Taco Bueno. These developments reflect PAR Technology’s ongoing efforts to enhance its market presence and operational capabilities.
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