Pinterest: Compressed Valuation, Solid User Growth, and Strategic Partnerships Support Buy Rating Despite Lowered Estimates

Stephen Ju, an analyst from UBS, maintained the Buy rating on Pinterest. The associated price target was lowered to $26.00.

Stephen Ju has given his Buy rating due to a combination of factors related to Pinterest’s growth profile and risk‑reward balance. While he trims his revenue and adjusted EBITDA estimates, particularly for the U.S./Canada and Europe, he emphasizes that the stock now trades at a compressed EV/EBITDA multiple, which in his view limits further downside. He also notes that the company is investing in AI and expanding its advertiser mix, which should support monetization over time.

Ju highlights that user trends remain supportive, with North American monthly active users holding above 100 million and international users growing faster than the global average. He further points to the potential upside from third‑party partnerships with Amazon and Google, which could be especially beneficial in Europe and the rest of world, even as macro headwinds and weak consumer packaged goods advertising persist. Overall, he believes the current valuation and long‑term strategic initiatives justify maintaining a Buy, despite a lower price target of $26.

According to TipRanks, Ju is a 5-star analyst with an average return of 11.4% and a 49.60% success rate. Ju covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Pinterest.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $27.00 price target.