Market Overview

It's Not Too Late To Buy PROS Holdings, Stifel Says In Upgrade

It's Not Too Late To Buy PROS Holdings, Stifel Says In Upgrade

Shares of PROS Holdings, Inc. (NYSE: PRO) gained around 82 percent in 2018, but it’s “hardly too late on this stock” given that the company’s top line growth is accelerating and its free cash flows could be positive soon, according to Stifel.

The Analyst

Tom Roderick upgraded PROS Holdings from Hold to Buy and raised the price target from $46 to $60.

The Thesis

The SaaS software company’s move to the cloud seems like a good idea, Roderick said in the Thursday upgrade note. (See his track record here.)

PROS Holdings’ airline customers operate in a B2C-centric space where there is demand for dynamic pricing and related artificial intelligence capabilities, the analyst said. Even the B2B installed base has begun recognizing the importance of customer pricing sheets that are transparent, flexibly updated and in a digital format, he said. 

The rising interest in dynamic pricing in the B2B space — along with PROS Holdings’ moves to align itself with leading B2B e-commerce platforms — has “created an urgency in customer decision making that didn't necessarily seem to be there 3-5 years ago,” the analyst, Roderick said. 

PROS Holdings seems to be generating around 23-percent growth in recurring revenue this year, and total revenue appears to be accelerating from 17 percent in 2018 to 23 percent, the analyst said. 

Stifel expects free cash flow to turn positive in 2019 and EBITDA margins to approach breakeven by the fourth quarter. 

Price Action

PROS Holdings shares were up 2.34 percent at $52.86 at the time of publication Thursday. 

Related Links:

10 Biggest Price Target Changes For Thursday

Benzinga's Top Upgrades, Downgrades For May 23, 2019

Latest Ratings for PRO

Oct 2019MaintainsBuy
Oct 2019DowngradesOverweightNeutral
Aug 2019MaintainsOverweight

View More Analyst Ratings for PRO
View the Latest Analyst Ratings

Posted-In: Stifel Tom RoderickAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (PRO)

View Comments and Join the Discussion!

Latest Ratings

VIACJP MorganReinstates50.0
NUVASVB LeerinkMaintains92.0
SRPTCantor FitzgeraldMaintains211.0
LULUGoldman SachsMaintains219.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Pruning Of The Teekay Family Tree Could Bear Fruit

33 Stocks Moving In Thursday's Mid-Day Session