Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
On Monday, Stifel adjusted its outlook on shares of Procore Technologies , Inc (NYSE:PCOR), reducing the price target to $85 from the previous $90, while still holding to a Buy rating for the company's stock. The adjustment comes ahead of the expected second-quarter 2024 results announcement by Procore, which is anticipated to occur between late July and early August, although a specific date has not yet been established.
The firm's analysis suggests that despite the current unpredictable economic indicators, Procore's traditionally cautious approach to forecasting may lead to better-than-expected financial results and potentially a reaffirmed or slightly increased guidance.
Still, it is important to note that the company has indicated that the frequency and magnitude of exceeding and raising expectations are likely to be less pronounced this year compared to the previous one.
Stifel revised its projections after a more detailed review of its financial model, which followed a non-deal roadshow (NDR) with Procore's CEO in May. The new forecast takes into account a mixed economic environment and an anticipated year-over-year growth in the company's calculated remaining performance obligations (cRPO) for the fourth quarter of 2024 in the high teens.
Consequently, the firm has lowered its year-over-year growth forecast for Procore's fiscal year 2025 revenue to 17% from the previously expected 20%, which is also below the consensus estimates of 19.7%.
While Stifel acknowledges the possibility that Procore could ultimately achieve over 20% growth in fiscal year 2025, the firm does not anticipate the initial guidance to begin with a growth rate starting with the number two. The revised price target reflects these updated expectations and assessments of the company's fiscal outlook.
In other recent news, Procore Technologies has seen a flurry of activity from various analyst firms. TD Cowen maintained its Buy rating on Procore, citing the company's strong position in a construction industry undergoing digital transformation. The firm expects Procore to achieve over 20% growth by 2025, bolstered by the inclusion of artificial intelligence insulation in its offerings.
BMO Capital also maintained its Outperform rating on Procore, despite a challenging bookings environment in the construction industry. Meanwhile, Mizuho Securities downgraded Procore's stock to Neutral from Buy, citing short-term weakness in the construction sector.
Procore reported a 26% year-over-year increase in revenue to $269 million in the first quarter, with international revenue growing by 32%. The company projects Q2 revenue between $274 million and $276 million, and full-year revenue between $1.14 billion and $1.144 billion.
Despite a 4% workforce reduction, Procore's focus remains on its core project management platform and potential for expansion among general contractors and owners.
These are recent developments, reflecting ongoing adjustments in response to Procore's performance and broader market dynamics. The firm's strategy revolves around capitalizing on easing competitive comparisons, maintaining stable renewal trends, and pushing forward with its enterprise strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.