Craig-Hallum analysts increased their target price for PAR Technology (NYSE:PAR) to $50.00 from $42.00 while reiterating their Buy rating on the stock. They mentioned that a period of consistent success could lead to significant growth in revenue.
The analysts explained that during the first half of 2023, the company focused on investing in and expanding new opportunities, particularly in Payments, MENU, and its Table Service Offering. As investors shifted their attention towards profitable expansion rather than indiscriminate growth, analysts believe that the noteworthy streak of accomplishments in Operator Solutions by PAR deserves recognition.
The revenue per store for Operator Solutions (comprising Brink and Payments) has displayed three consecutive quarters of accelerating growth, and this trajectory is anticipated to continue. The acceleration is primarily driven by the increasing adoption of Payments and targeted price hikes aimed at customers who received favorable terms for early adoption.
The analysts concluded that this favorable trend is expected to lead to substantial double-digit growth in Average Revenue Per User (ARPU) for several upcoming quarters.
