PAR Technology Faces Downgrade as Analysts Adjust Forecasts
Market analysts have revised their outlook for PAR Technology Corporation (NYSE:PAR), leading to a wave of concern among shareholders. The adjustments, which include a significant cut in revenue estimates, may indicate a need for investors to recalibrate their expectations.
The stock’s recent performance presents a mixed picture. While the shares have seen a 13% rise in the past week, closing at US$50.79, the analysts’ revised forecasts raise questions about future growth.
Following the downgrade, the consensus among nine analysts projects revenues of US$355 million for 2024. This would reflect a substantial 17% decrease in sales compared to the previous year. Despite this, losses are expected to decrease, shrinking by 19% per share to US$1.63.
Before this update, analysts had projected revenues of US$406 million and losses of US$1.79 per share for 2024. The shift in sentiment is apparent in the revised estimates, as the downgrade includes both decreased revenue expectations and reduced loss estimates.
Despite the weaker revenue outlook, the analysts increased the price target to US$62.38, indicating a degree of optimism, likely due to the anticipated reduction in losses.
Analyzing these forecasts in a broader context, we can compare them to the company’s past performance and industry growth projections. A significant change is the expectation of a 31% annualized revenue decline by the close of 2024. This contrasts sharply with the 18% growth observed over the past five years.
Compared to the broader industry, which is expected to see revenue growth of 7.4% annually, PAR Technology’s projected decline suggests it will lag behind its competitors.
While the price target has increased, the overall outlook remains cautious. The analysts’ actions, including the revenue estimate reduction, suggest a more cautious perspective on PAR Technology’s upcoming performance.
However, the long-term potential of the business is arguably more important than next year’s earnings figures. For a more comprehensive view, Simply Wall St offers a detailed range of analyst estimates for PAR Technology through 2026. Additionally, their platform provides a free list of growing companies backed by insider information.
