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Pinterest Buy Rating Reaffirmed Amid Strong Revenue Growth and Successful Ad Tool Adoption

Pinterest Buy Rating Reaffirmed Amid Strong Revenue Growth and Successful Ad Tool Adoption

John Blackledge, an analyst from TD Cowen, maintained the Buy rating on Pinterest. The associated price target was raised to $43.00.

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John Blackledge has given his Buy rating due to a combination of factors including strong anticipated revenue growth and the successful adoption of new advertising tools by Pinterest. The forecast for the second quarter of 2025 shows a revenue increase of 14.6% year-over-year, driven by improved monetization and the introduction of Performance+ ad tools. These tools, particularly the Creative and Automated Bidding offerings, have seen significant uptake, contributing to accelerated spending growth from advertisers.
Additionally, the long-term estimates have been slightly raised, and the price target has been increased from $40 to $43. Pinterest is trading at a favorable valuation, with a 13x EV/EBITDA and a 6.3% free cash flow yield based on 2026 estimates. The company’s ability to maintain robust impression growth and continued partnerships with major players like Google and Amazon further supports the Buy rating.

In another report released on July 1, Guggenheim also reiterated a Buy rating on the stock with a $39.00 price target.

Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PINS in relation to earlier this year.

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