Procore Technologies Receives Positive Analyst Rating Amid Strong Financial Performance

Piper Sandler's Brent A. Bracelin raised their price target on Procore Technologies (NYSE: PCOR) by 3.9% from $77 to $80 on 2024/02/16. The analyst maintained their Strong Buy rating on the stock.

In an assessment of the company's Q4 and FY 2023 earnings report, released on 2024/02/15, the analyst noted that the 24% Y/Y rise in Procore's cRPO (Current Remaining Performance Obligations) was better than predicted, thanks to outstanding execution. Although Piper Sandler expressed confidence with management's "solid 20% growth" guidance for 2024, the fact that cRPO could stay erratic and fall below 20% Q/Q indicates that the construction sector still faces challenges, the analyst cautioned investors.

Procore Technologies reported impressive financial results for Q4 2023 and FY 2023. For Q4 2023, the company reported EPS of $0.17, beating the Zacks Consensus Estimate and showing significant improvement year-over-year. Revenue for the quarter also exceeded expectations, reaching $260.04 million. The company's operating margin for Q4 2023 stood at 7%.

Looking at the full year, Procore reported strong growth in EPS and revenue for FY 2023. The company's FY 2023 EPS reached $0.30, marking a 158.8% increase year-over-year, while revenue for the year totaled $950 million, up 32% from the previous year. The operating margin for FY 2023 was reported at 2%.

Management provided guidance for Q1 2024 and FY 2024, with revenue targets and operating margin expectations outlined for both periods. Founder & CEO Tooey Courtemanche expressed optimism about the company's performance, highlighting key milestones achieved in 2023 and the positive outlook for future growth. CFO Howard Fu emphasized Procore's commitment to operational improvement, which contributed to significant margin enhancement in 2023.

Following the analyst rating update on February 16, other analysts also revised their price targets for Procore Technologies. Stifel Nicolaus's Tom Roderick raised the price target by 40.6%, Goldman Sachs's Kash Rangan raised it by 14.9%, and JMP Securities's Joe Goodwin increased their target by 14.8%. The majority of top-rated analysts currently view PCOR as a Strong Buy or Buy, with a small percentage suggesting a Hold position.

Since Procore's latest quarterly report released on February 15, the stock price has seen a 1.8% increase. Year-over-year, the stock has shown a gain of 19.7%, albeit slightly trailing the S&P 500, which posted a 22.4% increase during the same period.

Procore Technologies, Inc. offers a cloud-based construction management platform with various functionalities, catering to the needs of the construction industry in the U.S. and internationally.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.