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Investing.com - DA Davidson initiated coverage on Procore Technologies , Inc (NYSE:PCOR) with a Neutral rating and a $70.00 price target on Monday, representing potential upside from the current price of $63.78. According to InvestingPro data, analyst targets for PCOR range from $70 to $91, with the stock currently trading near its Fair Value.
The rating is based on 7x the firm’s updated 2026 revenue estimate for the construction software provider, according to analyst Gil Luria who has assumed coverage of the stock. The company maintains impressive gross profit margins of 80.2% and has achieved 16.1% revenue growth over the last twelve months.
DA Davidson’s recommendation reflects Procore’s progress toward Rule of 40 status, the company’s sensitivity to construction market conditions, and ongoing go-to-market changes expected to benefit growth and margins over time.
The firm noted that in the second quarter of 2025, Procore effectively navigated a challenging macroeconomic environment, delivering revenue that exceeded DA Davidson’s estimates.
This outperformance was driven by better-than-expected new customer acquisition and average revenue per customer expansion, according to the research note.
In other recent news, Procore Technologies reported its second-quarter 2025 earnings, exceeding analyst expectations. The company achieved a non-GAAP earnings per share of $0.35, surpassing the consensus estimate of $0.26, which represents a 34.62% surprise. Revenue for the quarter also outperformed forecasts, coming in at $324 million compared to the anticipated $311.99 million. Despite these strong financial results, Citizens JMP downgraded Procore’s stock rating from Market Outperform to Market Perform. This downgrade follows the earnings announcement and reflects a shift in analyst sentiment. The reasons behind the downgrade were not explicitly detailed, but it comes amidst a backdrop of strong earnings performance. These recent developments highlight a mixed reaction from analysts and investors.
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