Pros Holdings stock rating reiterated at Buy by Needham

Needham analyst firm reiterated a Buy rating on PROS Holdings (NYSE:PRO) with a price target of $25.00, aligning with InvestingPro data showing analyst targets ranging from $22 to $38. The stock, currently trading at $19.11, appears undervalued according to InvestingPro’s Fair Value analysis.

The firm maintained its position following PROS Holdings’ announcement that Chief Revenue Officer Todd McNabb would cease serving in his role effective July 1. McNabb will remain with the company through July 19, according to the announcement made after market close. Despite the leadership change, the company maintains strong fundamentals with a 66.5% gross margin and 8% revenue growth over the last twelve months.

The leadership change comes shortly after Jeff Cotton was appointed CEO and President of PROS Holdings on May 2, coinciding with the company’s first-quarter earnings release. Needham suggests the CRO departure likely results from this executive transition. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ stocks, analysts expect the company to return to profitability this year.

Needham indicated that while investor concerns about changes in sales leadership are understandable, it’s premature to determine any impact on second and third-quarter execution and bookings performance.

The firm expects Cotton to effectively fill the sales leadership role temporarily, citing his previous experience in go-to-market positions within the industry.

In other recent news, PROS Holdings Inc . reported its first-quarter financial results for 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $0.13, surpassing the forecasted $0.12. Revenue reached $86.3 million, slightly above the expected $85.7 million, marking a 7% year-over-year increase. The company’s subscription revenue grew by 10%, amounting to $70.8 million. In a significant corporate development, CEO Andres Reiner announced his retirement, with Jeff Cotton set to assume the role. Additionally, PROS Holdings held its annual stockholder meeting, where shareholders elected new directors and approved an increase in shares authorized for issuance. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year was also ratified. PROS Holdings continues to focus on AI-powered solutions, which have been a key driver for their growth and market position. The company projects Q2 2025 subscription revenue between $72 million and $72.5 million, indicating continued growth in the upcoming quarter.

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