Procore downgraded on weak construction trends at Mizuho

Mizuho analyst Siti Panigrahi downgraded Procore to Neutral from Buy with a price target of $70, down from $75. The firm cites weak trends in the construction industry for the downgrade. While positive on the growth prospects for Procore in the longer run due to low total addressable market penetration and scope for profitability improvements with potential upside from payments and generative artificial intelligence opportunities, Mizuho says near-term weakness in construction spending keeps it on the sidelines as it waits for the cycle to turn.