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Investing.com - Goldman Sachs raised its price target on Procore Technologies, Inc (NYSE:PCOR) to $90.00 from its previous target while maintaining a Buy rating on the construction software provider. This new target approaches the analyst high target of $91, according to InvestingPro data, which also indicates the stock is currently trading near its Fair Value.
The firm cited Procore’s solid third-quarter performance against a "still-sluggish construction backdrop," noting beats on revenue, current remaining performance obligations (cRPO), operating income, and free cash flow. Fourth-quarter revenue guidance was in line with expectations. InvestingPro data shows Procore maintains impressive gross profit margins of 80.22%, though the company is not yet profitable over the last twelve months.
Goldman Sachs highlighted that Procore has maintained approximately stable revenue and normalized cRPO growth in the mid-teens for more than three consecutive quarters, suggesting growth is nearing "cycle-trough levels." The stock rose 6% in after-hours trading following the results. This aligns with the company’s 16.08% revenue growth over the last twelve months, as reported by InvestingPro.
The investment bank outlined a "compelling path" forward for Procore, including de-risked growth expectations for fiscal year 2026, continued margin expansion, early traction in go-to-market transformation, and potential "greenshoots" from easing credit conditions and inflecting commercial planning indicators. Notably, Procore holds more cash than debt on its balance sheet, providing financial flexibility as it pursues growth opportunities.
At approximately 7x enterprise value to sales, Goldman Sachs views Procore as attractively valued compared to vertical software peers trading at 8-10x, describing it as "the clear leader in an under-digitized, massive TAM" with visibility toward mid-teens growth and improving free cash flow margins. While InvestingPro identifies Procore as trading at a high Price/Book multiple of 8.82, analysts expect the company to be profitable this fiscal year with an EPS forecast of $1.31. For deeper insights, check out the comprehensive Pro Research Report available for Procore, one of 1,400+ US equities covered with detailed analysis on InvestingPro.
In other recent news, Procore Technologies reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share 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. This performance has led several analyst firms to raise their price targets for Procore Technologies. Piper Sandler increased its price target to $91, highlighting the company’s progress toward significant margin expansion and a guide to 14% EBIT margins for fiscal year 2025. Similarly, KeyBanc raised its price target to $91, noting Procore’s current remaining performance obligation growth of 23.3%, which surpassed expectations. Canaccord Genuity also lifted its price target to $90, emphasizing Procore’s durable growth and commitment to margin expansion. BMO Capital increased its target to $87, following the company’s solid revenue and margin results. These developments reflect a positive outlook from analysts on Procore Technologies’ financial performance and growth prospects.
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