Summary of UBS action
UBS has adjusted its price target on Procore Technologies, Inc (NYSE: PCOR) downward to $74.00 from $87.00 while preserving a Buy rating on the construction software provider's shares. The revised target still sits substantially above Procore's most recent trading level of $51.14. The stock has declined 10.37% over the past week and, according to InvestingPro data cited in the announcement, is trading close to its 52-week low of $53.71.
Growth assumptions and recent performance
UBS expressed comfort with Procore's ability to sustain growth in the mid-teens, a view it says is corroborated by customer checks and industry data that point to modestly higher construction volume growth in fiscal 2026. That outlook aligns with the company's recent reported metrics: Procore recorded 14.94% revenue growth over the last twelve months and reported gross profit margins of 79.81%.
Model and investor expectations for FY26
The firm left its FY26 revenue estimate unchanged at 10% year-over-year growth. UBS also noted that market participants are likely anticipating initial FY26 guidance reflecting about 12% year-over-year revenue growth and roughly 350 basis points of EBIT margin expansion versus the prior year.
Valuation and identified risks
UBS singled out a few risks tied to Procore's near-term path. The primary concern is that the company’s new CEO might issue a more conservative initial guidance, which could affect investor sentiment. UBS additionally observed that Procore’s valuation — cited as 5.5x CY26E EV/S and 28x EV/FCF — is not inexpensive when compared with broader application software peers.
Rationale for maintaining the Buy rating
Despite trimming the target price, UBS maintained its Buy rating, pointing to improving end-market trends and what it perceives as relatively lower artificial intelligence risk for Procore versus peers. The firm views these factors as supportive of the company's relative positioning in the market.
Other recent developments affecting Procore
- Barclays upgraded Procore’s stock to Overweight and set a price target of $90.00, citing a positive outlook for U.S. non-residential construction.
- TD Cowen reduced its price target for Procore to $80.00 while retaining a Buy rating and expects the company to produce a fourth-quarter revenue beat.
- Procore received FedRAMP Moderate Authorization for its government solution, enabling U.S. federal agencies and contractors to manage construction projects under an authorized framework.
- The company acquired Datagrid to strengthen its artificial intelligence capabilities within construction technology; financial terms of the acquisition were not disclosed.
- In a board change, Ronald Hovsepian was appointed to Procore’s board of directors following the voluntary resignation of Brian Feinstein. The company stated Feinstein’s resignation was not due to any disagreement with its operations or policies.
Market context and closing observations
The UBS action reflects a calibration of near-term expectations while leaving the longer-term growth thesis intact. The firm’s decision to hold the Buy rating, even after reducing the target, underscores its view that improving construction market indicators and a potentially limited AI-related exposure leave Procore favorably positioned relative to some application software peers. At the same time, UBS cautions that valuation multiples and the tone of initial guidance under new leadership are variables that could influence the stock's performance.
Note: All figures and analyst comments in this report are taken from the statements and data provided with the UBS update and related analyst notes; no additional forecasts or data points were added.