Analyst Justin Post of Bank of America Securities reiterated a Buy rating on Pinterest, boosting the price target to $44.00.
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Justin Post has given his Buy rating due to a combination of factors including Pinterest’s strong quarterly performance and promising future outlook. The company reported higher-than-expected revenue and EBITDA for the second quarter, with notable user growth and increased engagement, particularly among Gen Z and male users. This demographic expansion is enhancing Pinterest’s appeal to advertisers, which is expected to drive continued revenue growth.
Additionally, Pinterest’s advancements in AI are contributing to improved user engagement and monetization, with potential for further growth in shopping activity and ad platform efficiency. The company’s strategic investments in engineering and sales personnel are also expected to yield high returns, supporting the upward revision of revenue and EBITDA estimates for 2025 and 2026. These factors, coupled with an attractive valuation, underpin Post’s decision to maintain a Buy rating and raise the price objective to $44.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $44.00 price target.