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Investing.com - Canaccord Genuity raised its price target on Procore Technologies, Inc (NYSE:PCOR) to $90.00 from $85.00 while maintaining a Buy rating on the construction software provider. This target sits at the high end of the analyst range, with InvestingPro data showing consensus targets between $70 and $91, and the stock currently trading near Fair Value.
The firm highlighted three key aspects of Procore’s Q3 performance: durable growth, commitment to margin expansion, and efforts to control equity dilution. These factors contribute to the company’s primary financial metric of free cash flow per share growth. InvestingPro data reveals Procore maintains impressive gross profit margins of 80.22%, supporting the company’s $10.74 billion market capitalization.
Procore’s Q3 revenue growth held steady at 15%, while calculated billings increased 17% and current remaining performance obligations (cRPO) grew 23% compared to the previous quarter. Canaccord noted that after adjusting for contract duration increases, the adjusted cRPO growth is likely closer to revenue growth. This aligns with the 16.08% revenue growth over the last twelve months reported in InvestingPro data.
The company’s updated guidance for 2025 projects 400+ basis points of annual operating leverage, with management committing to at least that amount of margin improvement again in 2026. Canaccord indicated it is maintaining more conservative projections in its model.
Procore’s share count grew by only 1% year-over-year, reflecting disciplined equity compensation and $129 million in year-to-date share repurchases, with the Board authorizing an additional $300 million in share repurchases over the next year. According to InvestingPro data, the company holds more cash than debt on its balance sheet with a low debt-to-equity ratio of just 0.06, providing financial flexibility for these repurchases. Discover more insights with InvestingPro’s comprehensive Research Report, part of the deep-dive analysis available for 1,400+ US equities.
In other recent news, Procore Technologies reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.42, compared to a forecast of $0.32. The company’s revenue also exceeded projections, reaching $339 million against an anticipated $328.26 million. These results highlight a strong performance for the quarter, reflecting positively on the company’s financial health. Following the earnings release, BMO Capital raised its price target for Procore Technologies to $87.00 from $82.00, maintaining an Outperform rating. This adjustment comes after observing revenue and margin upside, as well as solid growth in the company’s contracted remaining performance obligation. These developments indicate confidence in Procore’s continued growth and operational strength. Investors are likely to view these updates as positive indicators of the company’s trajectory.
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