Pinterest’s Strong Growth and AI Advancements Drive Buy Rating and Raised Target Price

Ronald Josey, an analyst from Citi, maintained the Buy rating on Pinterest (PINS – Research Report). The associated price target was raised to $41.00.

Ronald Josey has given his Buy rating due to a combination of factors that highlight Pinterest’s strong performance and growth potential. The company has shown significant growth in monthly active users, with a 10% year-over-year increase, which is a positive indicator of user engagement and platform relevance. Additionally, Pinterest’s advancements in artificial intelligence and advertising products are capturing a larger share of performance ad budgets, which are more sustainable and always-on.
Furthermore, Pinterest’s recent revenue guidance suggests a healthy advertiser demand, with expectations of 12-15% year-over-year growth. The company’s focus on expanding its verticals beyond retail and e-commerce, coupled with its full-funnel advertising strategy, positions it well for continued revenue momentum. These factors, along with the expansion of third-party integrations and monetization efforts, underscore the potential for expanded EBITDA, leading to the raised target price of $41.

According to TipRanks, Josey is a top 100 analyst with an average return of 23.4% and a 57.88% success rate. Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A.

In another report released on May 6, Benchmark Co. also maintained a Buy rating on the stock with a $45.00 price target.