Piper Sandler reiterates Overweight rating on Procore stock amid sector headwinds

Investing.com - Piper Sandler has reiterated an Overweight rating on Procore Technologies, Inc (NYSE:PCOR) with a price target of $82.00. The target represents potential upside from the current trading price of $71.77, with analyst targets ranging from $70 to $91. According to InvestingPro data, the company maintains impressive gross profit margins of 80.22%.

The research firm highlighted that despite current sector headwinds potentially limiting absolute growth in the near term, Procore is demonstrating mid-teens cRPO growth when adjusted for duration, while overall industry volumes excluding single-family construction are declining at a low single-digit rate. This aligns with the company’s solid revenue growth of 16.08% over the last twelve months, as reported by InvestingPro.

Piper Sandler noted this performance indicates Procore’s ability to gain market share in a challenging environment, even after absorbing expected impacts from its earlier GTM (go-to-market) transition this year.

The firm specifically recommended Procore to investors seeking a "high-quality vertical software name with enviable market share."

While Piper Sandler credited "endogenous factors like execution & product leadership" for delivering respectable growth in recent years, it also pointed to potentially greater benefits ahead when the construction sector experiences a cyclical recovery.

In other recent news, Procore Technologies has made significant leadership changes, naming Ajei Gopal, the former CEO of Ansys, as its incoming chief executive. This appointment concludes a leadership transition process that began in March 2024. Several analyst firms have responded to this development with BMO Capital reiterating an Outperform rating and a price target of $82, while Stifel also reiterated a Buy rating with an $80 price target. Berenberg initiated coverage on Procore with a Buy rating and a price target of $84, citing the company’s strong market leadership and integrated cloud-based platform. Citizens JMP maintained a Market Perform rating amid the CEO transition, with analyst Joe Goodwin confirming the move. Procore’s leadership transition appears to be a focal point for analysts, with the new CEO set to take over after the company reports its third-quarter 2025 results. These recent developments underscore the importance of Procore’s strategic direction and market positioning.

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