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Investing.com -- BTIG upgraded {{20773|{{20773|{{20773|PAR}}}} Technology}} to Buy from Neutral, saying the restaurant software provider’s sales pipeline and ability to win large enterprise deals should support more than 15% annual growth over the next three years.
The brokerage set a $65 price target, noting that {{20773|{{20773|{{20773|{{20773|PAR}}}}}}}}’s shares have fallen about 25% over the past month following a lower growth outlook and investor concerns around a potential acquisition of rival Olo which management has since denied. BTIG said the pullback presents an attractive entry point.
PAR has a $100 million sales pipeline, and BTIG estimates that with a 60% historical win rate, roughly $60 million of that could be converted into contracts over the next year.
The firm added that PAR is also competing for three large “megadeals” with top global restaurant chains, none of which are included in the current pipeline. If even one of those deals is secured, growth could accelerate toward 20%.
BTIG likened PAR’s positioning in enterprise restaurant technology to Toast’s role in the small business segment, arguing that PAR deserves a premium valuation as a leading provider to large restaurant brands.
Some recent acquisitions, including Stuzo and TASK, have weighed on organic growth in the short term, but BTIG views those assets as strategically important. Stuzo expands the company into convenience retail, while TASK allows PAR to compete globally for large deals.
BTIG valued the stock at 9 times 2027 gross profit, below Toast’s current multiple, but believes the premium is justified given PAR’s long-term growth potential and improving pipeline execution.