KeyBanc Raises PROS Holdings Price Target On Increased Confidence After Meeting With Management

Meetings with PROS Holdings, Inc. PRO management during the Annual KBCM Technology Leadership Forum inspired greater confidence in the company's sales pipelines and opportunities in B2B (business to business), according to KeyBanc Capital Markets.

The Analyst

KeyBanc’s Jason Celino maintained an Overweight rating on PROS Holdings while raising the price target from $77 to $80.

The Thesis

KeyBanc’s annual conference indicated the company’s decision to raise quota-sales hiring was positive and will support continued business momentum into 2020, Celino said in a note.

Various industries, like as food, agriculture, chemicals, energy and logistics, are now focusing on digital and customer experience and are, therefore, “increasingly looking to streamline their sales strategies across all go-to-market channels,” the analyst wrote. He added that PROS Holdings is well positioned to benefit from these trends.

The company is witnessing strong momentum so far and indicated plans to accelerate its hiring in 2019, to further support its sales pipeline and growth in 2020.

Management aims at increasing the quota-carrying sales headcount by 23%, Celino said, while adding that the company could add 14-15 sales representatives in the back half of the year.

The analyst raised the revenue and EPS estimates for 2020 from $291.0 million to $294.0 million and from a loss of 21 cents-per-share to 17 cents-per-share.

Price Action

Shares of PROS Holdings were trading down 0.62% at $70.30 at time of publishing.

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