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Investing.com - Stifel raised its price target on Procore Technologies, Inc (NYSE:PCOR) to $85.00 from $80.00 on Thursday, while maintaining a Buy rating following the company’s third-quarter financial results. The stock is currently trading at $79.74, with analyst targets ranging from $70 to $91, according to InvestingPro data.
Procore delivered what Stifel called a "solid" third quarter, with revenue growth of 14.5% year-over-year, exceeding analyst expectations. InvestingPro data shows the company maintained impressive gross profit margins of 79.8% in the last twelve months. The construction software company also reported better-than-expected current remaining performance obligations (cRPO), which grew 23% year-over-year, and total remaining performance obligations (Total-RPO), which increased 31% year-over-year.
The firm noted that Procore’s go-to-market changes are showing signs of progress, with higher pipeline conversion, improving expansion rates, and lower voluntary attrition. Procore indicated there was no material change in the macroeconomic environment.
For fiscal year 2025, Procore raised its revenue guidance by more than the third-quarter beat and increased its operating margin forecast. Stifel expects this guidance will "once again prove conservative." While InvestingPro data indicates Procore is not profitable over the last twelve months, analysts predict the company will be profitable this year with an EPS forecast of $1.31 for FY2025.
While Procore did not provide official guidance for fiscal year 2026, management expressed comfort with consensus revenue estimates, and Stifel anticipates "another year of healthy margin improvement." According to InvestingPro, Procore holds more cash than debt on its balance sheet, though it appears overvalued based on InvestingPro’s Fair Value assessment. For deeper insights and access to the comprehensive Pro Research Report on Procore, investors can explore InvestingPro’s extensive metrics and analysis tools.
In other recent news, Procore Technologies has seen a series of positive developments. The company reported strong third-quarter performance, with revenue, current remaining performance obligations (cRPO), operating income, and free cash flow exceeding expectations. Analysts have responded positively, with Goldman Sachs, Piper Sandler, KeyBanc, Canaccord Genuity, and BMO Capital all raising their price targets on Procore’s stock. Goldman Sachs and Canaccord Genuity set their targets at $90, while Piper Sandler and KeyBanc increased theirs to $91. BMO Capital raised its target to $87, highlighting revenue and margin improvements. Piper Sandler noted Procore’s progress toward significant margin expansion, aiming for 14% EBIT margins by fiscal year 2025. KeyBanc emphasized the company’s cRPO growth of 23.3%, surpassing expectations. Canaccord Genuity praised Procore’s commitment to margin expansion and controlling equity dilution.
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