Procore price target lowered to $79 from $80 at KeyBanc

KeyBanc lowered the firm’s price target on Procore to $79 from $80 and keeps an Overweight rating on the shares. Taking into consideration recent construction industry data, and some feedback from competitor reseller channels, the firm believes the construction backdrop remains varied, albeit unchanged/consistent with prior quarters. While KeyBanc expects in line 16% Q2 cRPO growth, it is conservatively lowering its Q3 cRPO to reflect a more U-shaped trough, and lower its 2025 revenue estimate to better match its cRPO assumptions exiting 2024. Nonetheless, the firm believes Procore has executed well amid a challenging macro, and continues to view growth drivers across GCs, owners, subs, and international, along with its long-term FinTech opportunity, positively.