Procore downgraded to Neutral from Buy at DA Davidson

DA Davidson downgraded Procore to Neutral from Buy with a price target of $60, down from $90. The Q2 earnings release signaled significant company-wide operating model changes to come, with an unclear time horizon but an expectation for changes ongoing into 2025, the analyst tells investors. Chains of command are being reorganized from a matrix to a general manager model and given the uncertainty of the impacts to growth, or the magnitude of the expense, the firm believes the risks have increased meaningfully, the analyst added.