In a report released yesterday, Andrew Sherman from TD Cowen reiterated a Buy rating on Procore Technologies, with a price target of $85.00.
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Andrew Sherman has given his Buy rating due to a combination of factors. Procore Technologies has shown stable growth in its committed revenue performance obligations (cRPO) and has exceeded revenue expectations by 3.7%, with guidance for the next quarter aligning with market expectations. The company’s go-to-market strategies are yielding positive results, particularly in product cross-selling, and the valuation at approximately 7x EV/Sales is considered attractive.
Furthermore, Procore’s strength across various regions and customer segments, including general contractors and owners, is impressive. The company has maintained steady mid-teens cRPO growth over the past three quarters, and there is potential for an early FY26 revenue guide. Procore’s customer base is expanding with significant new clients, and existing customers are increasing their commitments. The operational margin has also surpassed guidance, contributing to the positive outlook. Overall, these factors support the Buy rating and the increased price target of $85.
In another report released on July 28, Robert W. Baird also maintained a Buy rating on the stock with a $88.00 price target.