Procore Technologies: Strong Market Position and Growth Potential Justify Buy Rating

Analyst Andrew Sherman of TD Cowen reiterated a Buy rating on Procore Technologies (PCOR – Research Report), retaining the price target of $75.00.

Andrew Sherman has given his Buy rating due to a combination of factors that highlight Procore Technologies’ strong market position and growth potential. The company’s recent financial performance, including a 20% growth in committed remaining performance obligations (cRPO) and a revenue beat of 2.7%, indicates robust demand for its services. Despite a conservative revenue guidance for the second quarter, management has expressed confidence in its ability to withstand potential market downturns, suggesting resilience in its business model.
Additionally, Procore’s strategic go-to-market (GTM) changes are progressing well, with minimal disruption and lower-than-expected attrition. The company has also secured significant new contracts with major clients, showcasing its competitive edge in offering a comprehensive platform for project management. Trading at an attractive valuation compared to its peers, Procore is well-positioned to benefit from industry trends, such as Autodesk’s deprecation of Plangrid, which could drive more customers to its platform. These factors collectively support Sherman’s optimistic outlook and Buy rating for Procore Technologies.

Sherman covers the Technology sector, focusing on stocks such as Procore Technologies, Elastic, and PagerDuty. According to TipRanks, Sherman has an average return of -4.7% and a 34.09% success rate on recommended stocks.

In another report released on April 30, Canaccord Genuity also maintained a Buy rating on the stock with a $85.00 price target.