Brokerages see margin headwinds for Procore Technologies, cut PT

Procore Technologies

23/02/2022 11:03

** Piper Sandler cuts stock PT of construction software firm
Procore Technologies  PCOR.N  to $100 from $115, implying an
upside of 59% to its last close 
    ** Brokerage says co's plans to invest heavily this year in
research and development of products could result in a wider
operating loss 
    ** Canaccord Genuity cuts PT to $85 from $110, on higher
losses making the stock susceptible to near-terms swings
    ** "Procore intends to accelerate investments in both
product and go-to-market functions in 2022, a plan that will see
organic operating losses increase by about 500 bps
year-over-year to (15%) on a reported basis," Canaccord says
    ** J.P. Morgan lowers PT to $113 from $123 on margins
shrinking in FY22 as PROC ramps up R&D along with sales and
marketing investments
    ** However, the brokerage expects co to benefit from robust
commercial construction demand even in a tight labor market 
    ** Ten of 11 brokerages rate the stock "buy" or higher, one
"hold"; their median PT is $100 - Refinitiv data
    ** Up to last close, stock down 21.37% this year 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))