Procore Technologies stock gets Market Outperform rating from JMP

Investing.com - JMP Securities has reiterated its Market Outperform rating on Procore Technologies , Inc (NYSE:PCOR) with a price target of $95.00. According to InvestingPro data, the stock currently trades at $74.15, with analyst targets ranging from $60 to $95, suggesting potential upside based on the current Fair Value assessment.

The firm cited Procore’s position as the leading vendor in a large, under-digitized construction technology market, which positions the company to capture significant market share over time. The company has demonstrated strong execution with an impressive 81.21% gross profit margin and 18.59% revenue growth in the last twelve months.

JMP believes Procore’s 2025 guidance is conservative, suggesting numbers are likely to increase in the second half of the year, with customer retention and platform growth metrics potentially accelerating into 2026. InvestingPro analysis reveals several positive indicators, including expected net income growth and strong recent market performance. Get access to 7 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

The research firm highlighted Procore’s long-term growth opportunities, noting the company currently has "less than half" of existing customers’ volume on its platform and has penetrated less than 5% of potential customers with 17,300 logos out of a possible 360,000.

JMP also pointed to Procore’s international expansion potential, suggesting that the company’s shift to a general manager go-to-market model could accelerate its international business, potentially boosted by infrastructure investments like Germany’s proposed €500 billion infrastructure plan.

In other recent news, Procore Technologies reported its first-quarter earnings for 2025, exceeding both revenue and earnings per share (EPS) expectations. The company achieved a non-GAAP EPS of $0.23, surpassing the consensus estimate of $0.18, and reported revenue of $311 million, which exceeded the anticipated $302.6 million. Despite the strong financial performance, Stifel analysts reduced the price target for Procore to $75 but maintained a Buy rating, highlighting the company’s robust revenue growth and performance obligations. Citizens JMP also reaffirmed its Market Outperform rating with a $95 price target, reflecting confidence in Procore’s market position.

Procore has achieved the FedRAMP In Process designation, a step towards securing FedRAMP Moderate authorization for its government services, which could expand its presence in the U.S. public sector construction market. The company’s management expressed satisfaction with ongoing go-to-market changes and remains optimistic about its ability to meet financial targets despite potential macroeconomic challenges. Analysts from BMO Capital expect Procore’s transition year in 2025 to be a catalyst for growth, with updates on sales execution and AI developments anticipated.

Procore’s calculated remaining performance obligations (cRPO) showed a 20% year-over-year increase, with total RPO rising by 28%. The company continues to focus on AI-driven innovation and platform integration to enhance productivity and operational efficiency. Management has maintained a conservative outlook for the second quarter of fiscal year 2025, with revenue guidance between $310 million and $312 million, reflecting a 9-10% growth.

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