Citizens JMP reiterates Procore stock with $95 target

Wednesday, Citizens JMP analysts maintained a Market Outperform rating and a $95.00 price target for Procore Technologies , Inc. (NYSE:PCOR), expressing confidence in the company’s leadership transition and market position. With analyst targets ranging from $73 to $110, the stock currently trades at $65.21, suggesting significant upside potential. Analysts at Citizens JMP highlighted the positive aspect of founder Tooey Courtemanche shifting his focus towards customer and partner relations after stepping down as CEO to become the Executive Chairman. According to InvestingPro data, the company maintains impressive gross profit margins of 82.2%.

Procore, a leading provider in the construction management software market with a market capitalization of $9.78 billion, is recognized for its strong position in a sector that is still transitioning to digital solutions. The analysts believe that Procore is well-placed to capture a significant portion of this under-digitized market, supported by robust revenue growth of 21.2% in the last twelve months. The company’s performance in the fourth quarter was noted as an encouraging sign, with improved execution observed even before the full implementation of a new go-to-market strategy. For deeper insights into Procore’s market position and growth metrics, check out the comprehensive research available on InvestingPro.

The endorsement from Citizens JMP comes at a pivotal moment for Procore, as Courtemanche’s planned involvement in the company is expected to enhance strategic relationships and drive growth. By reducing his time spent on general and administrative tasks, Courtemanche can dedicate more effort to expanding Procore’s reach and influence in the industry. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, providing financial flexibility for strategic initiatives.

Analysts are optimistic about the potential impact of a new, experienced operator leading the company’s daily operations. This change is anticipated to further strengthen Procore’s ability to innovate and compete in a market with significant growth opportunities.

Procore’s commitment to its go-to-market model and the visible improvements in its execution reinforce the positive outlook from Citizens JMP. The company’s strategic direction and the recent leadership changes are seen as steps that will contribute to its long-term success and market share expansion.

In other recent news, Procore Technologies, Inc. has confirmed its 2025 financial outlook, projecting a 12% growth rate and an improvement in non-GAAP operating margin by 300-350 basis points. This announcement comes as the company begins a search for a new CEO, with current CEO Tooey Courtemanche planning to transition to Executive Chairman. Despite the leadership change, JMP Securities maintained a Market Outperform rating and a $95 price target, reflecting confidence in the company’s strategic direction. Additionally, KeyBanc Capital Markets raised its price target for Procore to $96, citing strong fourth-quarter performance and a successful transition in go-to-market strategy.

Procore’s recent earnings report showed a non-GAAP EPS of $0.01, falling short of the $0.12 consensus estimate, but revenue exceeded expectations at $302 million, representing a 16% year-over-year increase. The company’s calculated remaining performance obligations (cRPO) came in at $829.7 million, surpassing the consensus estimate and indicating a 19% year-over-year growth. Total (EPA:TTEF) remaining performance obligations (RPO) reached $1.286 billion, marking a 29% year-over-year increase.

Analysts from JMP and KeyBanc have expressed confidence in Procore’s ability to secure substantial contracts and maintain upward momentum in sales productivity and execution. The company’s reaffirmed guidance and strategic initiatives suggest potential for continued growth and margin expansion. Investors will be closely monitoring the CEO search process and its impact on Procore’s performance and long-term goals.

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