Pinterest downgraded to Neutral from Outperform at Baird

Baird downgraded Pinterest (PINS) to Neutral from Outperform with a price target of $20, down from $35, following the Q4 report. The company continues to see headwinds from larger advertisers and its recent restructuring requires a “near- term downshift in expectations” before growth stabilizes and margins improve through the second half of 2026, the analyst tells investors in a research note. The firm says that while Pinterest’s user growth and engagement trends remain positive, it is harder to build a user base to the company’s scale than finding ways to connect advertisers to a highly motivated audience. Baird expects the shares to be range bound until the company’s execution improves.