Procore stock target cut to $70 by Loop Capital

Wednesday, Loop Capital analysts lowered the price target for Procore Technologies , Inc (NYSE:PCOR) to $70 from $75, while maintaining a Hold rating on the company’s stock. The adjustment comes as Procore is scheduled to announce its first-quarter earnings for 2025 on Thursday, May 1, after the market closes. According to InvestingPro data, analyst targets for the stock range from $60 to $95, with the company maintaining impressive gross profit margins of 82.2%.

Analysts at Loop Capital anticipate that Procore will marginally surpass their projections, which include a 15% growth in calculated remaining performance obligations (cRPO), total revenue of $302 million, and non-GAAP earnings per share (EPS) of $0.19. These expectations align with InvestingPro data showing revenue growth of 21.2% over the last twelve months and analysts expecting profitability this year. These expectations are set against a backdrop of several factors influencing the company’s performance, including a stagnant demand within the broader construction industry, stable pricing, significant sales transformation efforts approaching a critical juncture, and an ongoing CEO transition.

The unchanged Hold rating reflects Loop Capital’s stance that they await evidence of diminishing headwinds in the construction industry, reduced execution risk from changes in the go-to-market strategy, and more clarity regarding the CEO transition before altering their recommendation.

The reduction in Procore’s price target to $70 is attributed to a broader trend of multiple compression within the software sector, as explained by the analysts. This adjustment takes into account the current challenges faced by the company and the need for Procore to demonstrate resilience and strategic clarity in the face of industry and internal changes.

In other recent news, Procore Technologies, Inc. has been the focus of several analyst updates and strategic changes. KeyBanc adjusted its price target for Procore to $77 from $96, maintaining an Overweight rating, ahead of the company’s first-quarter earnings report. The analysts predict a 13.5% growth in the company’s calculated Remaining Performance Obligations, though macroeconomic uncertainties may affect the construction sector’s recovery. BMO Capital Markets reiterated an Outperform rating with a $95 price target, emphasizing Procore’s leadership transition as the founder and CEO plans to become the Executive Chairman.

Stifel also maintained a Buy rating with a $93 price target, highlighting the company’s search for a new CEO as part of a strategic move to optimize leadership. Meanwhile, Citizens JMP affirmed a Market Outperform rating with a $95 target, expressing confidence in Procore’s ability to capture a significant portion of the construction management software market. DA Davidson maintained a Neutral rating with a $60 target, citing potential risks due to volume pressures in the U.S. construction sector. These developments indicate a period of strategic transition and cautious optimism among analysts regarding Procore’s future performance.

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