Procore shares dip as JMP reiterates $95 target, CEO search begins

On Tuesday, JMP analysts maintained a Market Outperform rating and a $95.00 price target on Procore Technologies , Inc (NYSE:PCOR), following the company’s announcement of a CEO transition and reaffirmation of its 2025 guidance. According to InvestingPro data, the company maintains impressive gross profit margins of 82.2% and holds more cash than debt on its balance sheet, demonstrating strong financial fundamentals. Procore Technologies, after the market closed on Tuesday, shared news that the Board of Directors has initiated a comprehensive search for a new CEO. The current Founder and CEO, Tooey Courtemanche, plans to move to the role of Executive Chairman once the new CEO is appointed.

The company also confirmed its 2025 financial outlook, projecting a growth rate of 12% and an improvement in non-GAAP operating margin by 300-350 basis points. Despite this affirmation of future goals, Procore’s stock experienced a 3% decline in after-hours trading. This downturn follows an 8% drop year-to-date, against a backdrop of a 5% decrease in the Russell 3000 index. InvestingPro analysis indicates that while the stock has seen a notable 25.4% gain over the past six months, it currently trades near its Fair Value, with analysts setting price targets ranging from $73 to $110.

Aaron Kimson of JMP commented on the company’s announcement, underlining the continued confidence in Procore Technologies with the maintained price target and rating. The firm’s stance remains positive despite the leadership transition and recent market performance.

The search for a new CEO comes at a time when Procore Technologies is focused on maintaining a trajectory of growth and margin expansion as outlined in their 2025 guidance. The company’s commitment to these objectives is clear, even as it navigates changes in its executive team.

Investors and the market will be watching closely as Procore Technologies embarks on this period of transition, with the search for a new leader and the ongoing efforts to meet its stated long-term financial targets. The stock’s movement in after-hours trading reflects immediate reactions to these developments, as Procore steps into a new chapter of corporate leadership. For deeper insights into Procore’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which cover over 1,400 US stocks with expert analysis and actionable intelligence.

In other recent news, Procore Technologies reported its fourth-quarter earnings, revealing a mixed financial performance. The company posted a non-GAAP earnings per share (EPS) of $0.01, which fell short of the expected $0.11. However, Procore’s revenue exceeded expectations, reaching $302 million against the forecast of $297.43 million, marking a 16% year-over-year increase. The company also raised its full-year revenue guidance to $1.285-$1.290 billion, reflecting a 12% growth, and increased its non-GAAP operating margin guidance to 13-13.5%.

Procore’s Board of Directors has initiated a search for a new CEO, with Founder and current CEO Tooey Courtemanche set to transition to Executive Chairman once a successor is appointed. Despite the leadership change, JMP Securities maintained a Market Outperform rating and raised its price target for Procore to $95.00, while KeyBanc Capital Markets increased its target to $96.00, citing strong fourth-quarter performance. The company’s calculated remaining performance obligations (cRPO) also showed significant growth, surpassing analyst expectations.

These developments reflect Procore’s strategic initiatives and product innovations, which appear to have bolstered investor confidence. The company’s focus on AI and data-driven insights continues to emphasize efficiency and risk mitigation in construction management. As Procore navigates its CEO transition and implements its go-to-market strategy, analysts remain optimistic about the company’s growth trajectory and market position.

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