DA Davidson starts Procore at Buy, cites early mover advantage in construction

DA Davidson analyst Gil Luria initiated coverage of Procore with a Buy rating and $72 price target. The analyst is positive on the company’s early-mover advantage in an under-digitized construction market, where it has several levers for capturing the value created for its multiple stakeholders, the analyst tells investors in a research note. The firm adds that Procore’s "healthy" balance sheet also supports its balanced investments for growth and profitability that are ahead of the potential 2025 free cash flow breakeven.