Analyst Brian Nowak of Morgan Stanley maintained a Buy rating on Pinterest, reducing the price target to $32.00.
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Brian Nowak has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Pinterest. Despite facing near-term uncertainties with revenue growth and advertiser diversity, Pinterest is showing promising signs of platform engagement and commercial intent. The company is experiencing significant growth in user queries and outbound clicks to advertisers, driven by improvements in its recommendation algorithms.
Nowak notes that Pinterest’s efforts to align its bidding systems with advertiser conversion metrics, similar to what larger platforms have done, could enhance revenue generation. Additionally, Pinterest’s valuation appears attractive, trading at a discount compared to peers, which, when combined with potential catalysts for growth, supports the Buy rating. The expectation is that as Pinterest continues to scale its performance and drive advertiser adoption, it will translate these positive platform trends into substantial revenue growth by 2026.