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Friday, Stifel analysts reduced the price target on Procore Technologies , Inc (NYSE:PCOR) stock to $75 from $93, while still recommending a Buy rating. The construction technology company, currently valued at $9.5 billion, trades between analyst targets of $60 to $95. According to InvestingPro analysis, the stock appears slightly overvalued at current levels. The analysts noted that Procore Technologies reported strong first-quarter results, with revenue exceeding expectations, showing a 15% year-over-year constant currency growth. The company maintains impressive gross profit margins of 82.23% and has achieved 21.23% year-over-year revenue growth. Additionally, the company’s calculated Remaining Performance Obligations (cRPO) increased by 20% year-over-year, with a mid-teens rise when excluding longer-duration contracts. Total (EPA:TTEF) Remaining Performance Obligations (Total RPO) also saw a significant jump of 28% compared to the previous year.
Procore’s management has expressed satisfaction with the progress of go-to-market (GTM) changes. During the earnings call, the focus was on the macroeconomic environment and the impact of tariffs. Procore observed no significant alterations in customer behavior due to these factors at this time, acknowledging that tariffs have a variety of effects, some negative and others positive.
Looking ahead, Procore provided second-quarter fiscal year 2025 guidance below the consensus, which the company described as conservative. However, management reaffirmed the high-end of their full-year 2025 revenue guidance and slightly raised the low-end. They also maintained their guidance for FY operating margin. Confidence was expressed in the company’s ability to meet these targets, even if the demand environment deteriorates significantly. Procore’s management believes they have the means to drive additional profitability if the macroeconomic conditions worsen. InvestingPro data shows the company maintains a GOOD overall financial health score, with analysts expecting profitability this year. Discover 6 more exclusive InvestingPro Tips and comprehensive financial analysis in the Pro Research Report.
In other recent news, Procore Technologies reported its first-quarter earnings for 2025, exceeding both revenue and earnings per share (EPS) expectations. The company posted a non-GAAP EPS of $0.23, surpassing the consensus estimate of $0.18, while revenue reached $311 million, above the anticipated $302.6 million. This represents a 15% year-over-year increase in revenue, driven by strong international growth. Procore’s calculated remaining performance obligations (cRPO) also impressed, with a year-over-year growth of 20%, surpassing the consensus. Citizens JMP reaffirmed its Market Outperform rating for Procore, maintaining a $95 price target, reflecting confidence in the company’s market position and future prospects. Despite these positive results, Procore’s stock remained stable in aftermarket trading. The company continues to focus on AI-driven innovation and platform integration while maintaining a conservative outlook due to industry uncertainties. Procore provided full-year revenue guidance of $1,286-$1,290 million, indicating a 12% growth, and expects Q2 2025 revenue between $310-$312 million, representing a 9-10% growth.
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