KeyBanc adjusted its price target on shares of Procore Technologies , Inc (NYSE:PCOR) to $79 from $80, while the Overweight rating on the stock was retained.
The firm's decision is in light of recent construction industry data and feedback from competitor reseller channels. The current construction market conditions are described as varied but consistent with previous quarters.
The analyst anticipates Procore's second-quarter cRPO (calculated remaining performance obligations) growth to align with expectations at 16%.
However, the third-quarter cRPO forecast has been moderately reduced to account for a more pronounced U-shaped recovery pattern. Additionally, the firm has revised its 2025 revenue estimate for Procore to better align with the cRPO projections for the end of 2024.
Despite these adjustments, KeyBanc acknowledges Procore's effective management during challenging economic times. Procore's growth is attributed to a variety of factors including its strong presence across general contractors, owners, subcontractors, and international markets.
Furthermore, the company's long-term financial technology prospects are viewed positively.
KeyBanc's reassessment of Procore's financial outlook reflects a cautious yet optimistic stance on the company's future performance.
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