What Happened?
Shares of construction management software provider Procore Technologies (NYSE: PCOR) jumped 4.9% in the morning session after Barclays upgraded its rating on the stock to "Overweight" from "Equalweight" and increased its price target.
The firm raised its price target to $90 from $82. The analyst cited a positive outlook for U.S. non-residential construction heading into 2026 as a key reason for the upgrade. Barclays also noted confidence in Procore's new CEO, Ajei Gopal, highlighting his experience with enterprise customers and scaling a business's revenue. The bank's price target assumed continued revenue growth for the company in the upcoming fiscal years.
After the initial pop the shares cooled down to $73.37, up 4.7% from previous close.
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What Is The Market Telling Us
Procore Technologies’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 13.9% on the news that the company reported strong fourth-quarter 2024 results as its revenue and billings exceeded analysts' expectations, and full-year revenue guidance came in slightly above Wall Street's estimates.
Sales grew 16% y/y, fueled by strong customer expansion and increased adoption of its software platform, particularly among high-value clients, with the number of customers generating over $1 million in annual recurring revenue, rising 39%y/y. On the other hand, its EPS missed, as operating margins fell sharply. Overall, this was a mixed quarter.
Procore Technologies is up 4.7% since the beginning of the year, but at $73.37 per share, it is still trading 16.9% below its 52-week high of $88.33 from February 2025. Investors who bought $1,000 worth of Procore Technologies’s shares at the IPO in May 2021 would now be looking at an investment worth $833.69.
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