Guggenheim analyst Michael Morris has maintained their bullish stance on PINS stock, giving a Buy rating on July 24.
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Michael Morris has given his Buy rating due to a combination of factors that highlight Pinterest’s promising growth trajectory. The company is in the early stages of capitalizing on its monetization opportunities, with significant progress in AI-related investments and strategic partnerships. These developments are expected to drive near-term revenue growth, with a forecasted increase of 14.4% for the second quarter, aligning with the higher end of management’s guidance.
Additionally, the strength in direct response advertising demand, as indicated by Alphabet’s recent results, supports the optimistic outlook for Pinterest’s profitability. While the rate of margin expansion may slow due to increased AI investments, the overall profitability is anticipated to rise throughout the year. The combination of these factors presents an attractive value proposition for this digital ad player, reinforcing confidence in management’s ability to execute growth initiatives effectively.
Morris covers the Communication Services sector, focusing on stocks such as Pinterest, Paramount Global Class B, and Meta Platforms. According to TipRanks, Morris has an average return of 15.6% and a 60.00% success rate on recommended stocks.
In another report released on July 24, Benchmark Co. also reiterated a Buy rating on the stock with a $48.00 price target.