Procore price target raised to $90 from $86 at JPMorgan

JPMorgan analyst Alexei Gogolev raised the firm’s price target on Procore to $90 from $86 and keeps an Overweight rating on the shares. The shares have underperformed in the past two months, likely explained by Procore’s acute exposure to non-residential construction, the analyst tells investors in a research note. However, the firm’s analysis of the underlying indicators in non-residential construction suggest a broadly unchanged dynamic year-to-date, which prompts it to renew its optimism for Procore shares ahead of Q2 earnings. The stock is trading at a 25%-30% discount to vertical software-as-a-service as well as construction software peers, according to JPMorgan. The firm says Procore is among its top picks.