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Investing.com - Piper Sandler raised its price target on Procore Technologies, Inc (NYSE:PCOR) to $91.00 from $82.00 on Thursday, while maintaining an Overweight rating on the construction software company’s stock. The new target represents a potential 27% upside from the current price of $71.54, though InvestingPro data suggests the stock is trading near its Fair Value.
The research firm cited Procore’s progress toward delivering more than 400 basis points of margin expansion this year while maintaining durable growth. Piper Sandler noted that Procore is guiding to 14% EBIT margins for fiscal year 2025. InvestingPro data shows Procore maintains impressive gross profit margins of 80.22%, supporting the company’s margin expansion story.
Execution at Procore appears to be improving, with the company reporting two consecutive quarters of strong net new Annual Recurring Revenue (ARR) results and encouraging traction with large deals, which grew 31% across six and seven-figure contracts. This execution is reflected in the company’s 16.08% revenue growth over the last twelve months, though Procore remains unprofitable during this period.
Piper Sandler expressed optimism about Procore’s increasingly diversified customer base spanning owners, general contractors, and specialty contractors. The firm also highlighted commentary suggesting at least approximately 400 basis points of margin expansion in 2026.
The research firm’s increased conviction in Procore’s margin trajectory and positive signs in demand and execution contributed to the higher price target, with Piper Sandler noting these factors position the company well for growth in 2026.
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 the forecast of $0.32. Revenue for the quarter also exceeded projections, reaching $339 million against an anticipated $328.26 million. Following these results, several analyst firms adjusted their price targets for Procore Technologies. KeyBanc raised its price target to $91 while maintaining an Overweight rating, acknowledging the company’s current remaining performance obligation growth of 23.3%. Canaccord Genuity also increased its price target to $90, citing Procore’s durable growth and commitment to margin expansion. BMO Capital adjusted its price target to $87, highlighting the revenue and margin upside seen in the third quarter. These developments reflect the positive sentiment among analysts regarding Procore Technologies’ recent performance and future prospects.
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