Procore Technologies: Hold Rating Amidst Leadership Transition and Strategic Shifts

Mizuho Securities analyst Siti Panigrahi has maintained their neutral stance on PCOR stock, giving a Hold rating yesterday.

Siti Panigrahi has given his Hold rating due to a combination of factors surrounding Procore Technologies. One key reason is the recent announcement that the current President and CEO, Tooey Courtemanche, will transition to Executive Chairman once a successor is appointed. This change comes at a time when the company is undergoing a transition with its go-to-market strategy, which could lead to potential disruptions in growth during FY25 and possibly beyond.
Despite these changes, the company has reaffirmed its guidance for 1Q25 and FY25, indicating confidence in its business stability amidst market uncertainty. The search for a new CEO is focused on finding someone with strong operational experience, which is crucial for scaling the company further. Given these circumstances, and the fact that the current CEO will remain involved in the business, Panigrahi believes the company is positioned to manage this transition without significant changes to its direction, thus maintaining a Neutral stance on the stock.

Panigrahi covers the Technology sector, focusing on stocks such as Intuit, RingCentral, and Paycom. According to TipRanks, Panigrahi has an average return of -2.2% and a 43.51% success rate on recommended stocks.

In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $90.00 price target.