In a report released today, Ronald Josey from Citi maintained a Buy rating on Pinterest (PINS – Research Report), with a price target of $41.00.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Pinterest’s potential for growth. One of the key reasons is the increase in user engagement and daily active users, particularly in the U.S., which has been driven by Pinterest’s investments in AI for content relevancy and newer tools like Visual Search. This improvement in engagement is seen as a positive indicator for the platform’s ability to attract and retain users, thereby supporting revenue growth.
Additionally, Pinterest’s innovations in lower funnel advertising, such as Performance+ and ROAS Bidding, are expected to enhance revenue visibility through a multi-year adoption cycle. Despite some macroeconomic uncertainties and challenges in specific verticals, the stabilization of the advertising market and Pinterest’s ability to capture a larger share of ad budgets are seen as promising. These factors, combined with operational efficiency, support the Buy rating and the target price of $41.
In another report released on June 3, J.P. Morgan also upgraded the stock to a Buy with a $40.00 price target.